Tuition Fees: EU Students

Matt Western Excerpts

Monday 29th April 2019 Commons Chamber

[Chris Skidmore]

I will happily take a look at that specific issue and take it up with the Student Loans Company, which I visited in Glasgow about a month ago, and I am happy to continue our correspondence about the issue.

[Matt Western (Warwick and Leamington) (Lab)]

Our higher education sector has been one of the great success stories of recent years, and we have seen huge expansion, which has been predicated on our being part of the European Union and attracting the best international students. The Minister speaks of talking this country down, but the reality is that universities such as Warwick, which is part of the Russell Group, have lost 3% of undergraduate applications from the EU and 9% of postgraduate applications. Will the Minister meet me, and the vice-chancellor of Warwick University—one of our finest international universities—to discuss his proposals and what their economic and financial impact will be?

[Chris Skidmore]

I should be happy to have the opportunity to meet the hon. Gentleman and the vice-chancellor of Warwick University. I do not remember exactly where Warwick comes in my universities tour, but it may be coming up shortly. I recognise its international importance. I last visited it two years ago, in a different ministerial guise, and had the opportunity to meet Lord Bhattacharyya, who, sadly, departed recently. He worked across an international field to establish the university’s manufacturing centre.

I listen to concerns that are expressed. I have quoted figures that have been published, but some Members have raised issues relating to the current academic year, in respect of which figures have not been published. I want to ensure—as I do when I go to Brussels, when it comes to some of the negotiations on Horizon Europe—that I make the positive case that we want to protect postgraduate students in particular. We are committed to spending 2.4% of GDP on research and development, and if we are to hit that target by 2027, it is vital that we have a pipeline of talent that is national, European and international. That was a long answer to the hon. Gentleman’s question, but, yes, I will certainly meet him and the vice-chancellor.

Solar Industry

Matt Western Excerpts

Tuesday 5th March 2019 Westminster Hall

[Antoinette Sandbach]

I agree that is worrying. I would argue that small-scale renewables encourage our constituents to get involved in a whole green agenda and to look at their homes and their energy use in a completely different way. If we combined that with energy efficiency measures, we would start to get some dramatic change in the sector. There is a big opportunity for the Minister regarding energy efficiency, as well as in combination with renewables.

[Matt Western (Warwick and Leamington) (Lab)]

Will the hon. Lady give way?

[Antoinette Sandbach]

This will have to be the last intervention.

[Matt Western]

The hon. Lady is being very generous, and I commend her for bringing the matter before us. From 2012 to 2018 we saw an 80% reduction in installations. We were democratising energy; a powerful thing was going on in this country. It is so important that the sector has some certainty—such as a 10-year plan— to ensure that we deliver.

[Antoinette Sandbach]

The hon. Gentleman will have heard in my speech that I have been arguing for that certainty. The consultation closed four hours ago, so the Minister will not yet have had time to consider the responses, but I think that, from the debate, she will appreciate the urgency of doing so. I hope that she can offer answers to my questions and reassurance to those who have backed renewables. We are rightly proud of our position as a world leader in renewables technology and climate change, and I hope that the Government will take concrete steps to keep us in that positive position.

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[Claire Perry]

I will touch on that good point about community. Many good schemes operate across various local authorities.

The feed-in tariff scheme has been an effective part of our great decarbonisation journey. Since 2010, the scheme has supported more than 830,000 installations, 99% of which are solar and are currently generating about 3% of total electricity consumption. Also, a few things have changed since that time, as the hon. Member for Hornsey and Wood Green (Catherine West) will know. We have seen a dramatic fall in the cost of solar installation—up to 80% in some cases—which is to be welcomed, as it makes that more accessible to many people. We have also seen a dramatic fall in the cost of other renewable energies.

I like the phrase the hon. Member for Warwick and Leamington (Matt Western) used: the democratisation of energy. We are all participating, and one of the great benefits is that the hugely important technology that is offshore wind now costs the same, effectively, as building a new gas-fired power plant. That is a benefit to us all and to all our bills.

The feed-in tariff scheme has cost us almost £6 billion to date, and over its lifetime it will continue to cost us all about £30 billion, on many of our bills. It was absolutely right, therefore, that the decision was taken—before my time—to close the scheme. As we move to a lower-cost solar environment, and to a world in which we are rapidly seeing price parity between renewables and non-renewables technology, it is important to think about the impact on bills.

[Matt Western]

With all the new build housing that is going up, does the Minister think the Government could be a lot more ambitious? There are hundreds of thousands of houses, which is terrific, but we are so unambitious in enabling people to have that democratisation of energy from within their own properties.

[Claire Perry]

The hon. Gentleman will be aware that we have some of the tightest energy efficiency standards for new homes, but I totally agree that we need to go further, and my right hon. and hon. Friends in the Ministry of Housing, Communities and Local Government are looking at that right now. Under this Government, we will build millions of homes; that is absolutely part of our ambition, and it is right that we make them as energy efficient as possible and that they contribute as much as possible to this revolution.

I want to focus on a couple of the challenges that my hon. Friend the Member for Eddisbury emphasised, one of which is the concern about jobs. We have seen a healthy supply chain build up and it is exciting that we are already seeing subsidy-free solar projects at scale being brought forward. One consultant’s estimates tell us that 2.3 GW of solar projects already in the system in the UK with, or awaiting, planning permission could be delivered without subsidy. Lightsource, which has just been bought by BP, says that it is developing 300 MW of subsidy-free projects backed by power purchase agreements, some of which will be delivered during 2019. So we are starting to see solar being delivered at scale without subsidy—indeed, I opened the country’s first subsidy-free solar farm in my first few weeks in the job. That is incredibly exciting, and I am very ambitious for the jobs that will be created over the next few years.

Draft Designs and International Trade Marks (Amendment etc.) (EU Exit) Regulations 2019

Matt Western Excerpts

Tuesday 5th March 2019 General Committees

[Bill Esterson]

I think, Mr Hanson, we are in danger of wandering into a slightly different part of the forest.

The Minister set out the arguments in favour of creating a system that addresses what will be needed in this country for both registered and unregistered designs to apply in the UK, and I have relatively few concerns about his remarks. However, as always with such regulations, there is the question of whether Opposition Members are in a position to give our full judgment on both the available information and the responses from the technical experts in the sector.

I put on the record, again, our concern about our ability to fully scrutinise what we are being asked to support. It is a common problem with regulations, often related to the speed with which they are being pushed through, their detail and technical content, and their importance. As ever, it is important to get that point across, as this is another example of costs—albeit the Minister is claiming that they are relatively small —for creating a functioning regime after we leave the European Union.

As the sifting Committee said in its report when it recommended that the draft regulations be considered in Committee,

“The work of conversion is clearly a major exercise.”

That work will involve 700,000 registered Community designs alone. The preliminary estimate is of £375,000, which may appear to be a relatively small amount of money, but that is clearly not without significant amounts of work. The Intellectual Property Office says that it is able to address that and that costs are recovered through fees. The Minister has pointed out that the fees have come down. I have no reason to doubt him on that, but it will take time, both for the authorities to process the change in arrangements and for businesses to make sure they are covered. I believe there is a nine-month window for businesses to adapt to the new regime—the Minister may wish to correct me on that. Perhaps he could also answer how the Government intend to make sure that everybody has the cover that they need and is aware of the changes that they need to make during that transition period.

I have one question for the Minister, the answer to which I did not catch in his opening remarks. Perhaps he can explain how the unregistered Community design system operates and how businesses obtain their protection without having to register for it. I note that there is a three-year period. Can he clarify how that system operates so that the protection is in place? From what he said, it is clearly an important part of intellectual property protection. Perhaps he could give us some clarity on how it operates.

As ever, there is the thorny issue of consultation or, to be strictly accurate, the lack of public consultation that we see with the regulations going through Committees every single week. I notice that no formal consultation was carried out, but that stakeholders were asked to give their opinions. Perhaps the Minister can tell us—I cannot find the information anywhere—who was consulted and what their responses were to those informal consultation discussions. It would have been very helpful to have that information in front of us; it would have helped to ensure that we were in the best possible position to judge whether we should or should not support the regulations. I hope that the Minister, if he does not already, will soon have a note on what the consultations were, who was consulted and what the responses were.

I want to tell the Committee of the key concern raised by the Alliance for Intellectual Property. It is not particularly concerned with the continuing regime in the UK; it is relatively confident that what the Minister has described meets its requirements. Its concern is the lack of reciprocity. If equivalent protection is achieved through the withdrawal Bill, it believes that the design sector will still be gravely at risk without reciprocal protection from the EU27. After we have left the European Union, designs that are first disclosed in the UK might well be sufficiently protected here, but will receive no unregistered Community design protection in the EU, because we will no longer be members. The AIP’s view is that this would have grave consequences for UK designers: according to a recent survey by Anti Copying In Design, almost 80% of them rely on the unregistered Community design right to protect their designs.

The EU is the largest export market for many UK design sectors, contributing over two-thirds of UK furniture manufacturers’ export revenue. Such a loss of reciprocity poses a serious threat to leading industry events such as 100% Design, London Fashion Week and Top Drawer, which creators from all over the world attend in order to reveal new and innovative designs. Without protection, designers will either have to run the risk of copying throughout the EU27 following disclosure, or simply avoid first disclosure in the UK altogether. Perhaps the Minister can advise on which route the Government think designers should take.

[Matt Western (Warwick and Leamington) (Lab)]

On the point about designers and furniture manufacturers, there is a company in my constituency—a small business, which exports to 70 countries around the world—that faces significant costs in the enforcement of this design legislation and is up against a lot of copycat manufacturers, particularly in the far east. The company will be especially exposed, because Europe is such a big market for it.

[Bill Esterson]

Using the example of his constituents’ business, my hon. Friend has set out the sector’s exact concerns and the challenge for the Government to ensure protection of our innovative and creative exporters. Given the end of the parallel system to which the Minister referred in his opening remarks, perhaps the Minister can tell us how the Government will provide assurances.

What is the state of negotiations on achieving protection in this area in the European Union? We cannot overstate the importance of that protection for businesses such as that of my hon. Friend’s constituents. I hope that there is an answer to that, and that the Minister can give us some assurances. We know that all too often negotiations on the details of post-Brexit arrangements have not gone as well as they need to—I hope that this issue is not one of those.

I asked the Minister about consultation. As ever, the approach to impact assessment is limited. Paragraph 13 of the explanatory memorandum discusses regulating small businesses. How well prepared will they be? This picks up on my earlier point on ensuring that all businesses are aware of the changes that will happen and the actions they need to take. Again, the Government have chosen a very narrow interpretation of “impact” in their approach to impact assessment; they are not taking the wider impact on the economy as a whole. As I said on previous occasions, that is regrettable and does not set out the true impact of regulations such as these.

That brings me to a number of questions that arise from the commentary in the explanatory memorandum. Can the Minister explain how the system will work for existing rights that are granted by the European Union’s IPO? I am not entirely sure whether that question follows on from that asked by the right hon. Member for South Holland and The Deepings, but I think it is similar. If the Minister has not already answered it, perhaps he can pick up the point about ongoing validity for five years.

My next question is about paragraph 2.8 of the explanatory memorandum, which references action being taken by EU rights holders and their protections in the UK. My assumption is that those rights holders will be protected in the UK, and that the concern is about that lack of equivalence. Perhaps the Minister could clarify that point, along with the ones about protections of UK designers in the EU.

According to paragraphs 7.17 and 7.27 of the memorandum, 12,000 international trademark applications and 1,000 design applications are estimated to be pending on exit day. How are the Government making sure that all those applying know that they need to file a new application? That point is similar to the earlier questions about making sure that all businesses understand what they need to do.

Paragraph 13.3 of the memorandum states that

“there is sufficient time for all businesses to familiarise themselves with the changes”

before the regulations take effect, but there is a difference between there being time and businesses taking up the option. Certainly, many small businesses are not always equipped to address the regulations that come to them, so I really want to press the Minister on the impact on our small and medium-sized enterprise community.

In paragraph 7.33, there is a reference to

“the right to opt out”.

Again, what are the Government doing to make sure that businesses are fully aware of the options available to them, which are referred to in that paragraph?

I think this is my final question—[Laughter.] I am sure I can find some more if Members want me to, but on balance, I will stick to this one. The memorandum refers to fees of £63,000. Are those fees payable by businesses of all sizes, and is that going to continue to be the case? The Minister mentioned lower fees in his opening remarks, so perhaps he could link what he said then with the figure of £63,000 cited in the explanatory memorandum.

The example that my hon. Friend the Member for Warwick and Leamington gave about the furniture manufacturer in his constituency demonstrates how important it is that we get these regulations right and have arrangements in place. It is particularly important for designers for whom the EU is a major market; as we have heard, two thirds of designers export to the EU. I would particularly like to hear the Minister’s answer about reciprocal arrangements, and I hope he is also able to answer the other questions that I have asked.

--- Later in debate ---

[Chris Skidmore]

In terms of the consultation process and the individuals acting in a personal capacity, I am not sure whether I have the authority to divulge their names on the Floor of the Committee at this particular moment. Perhaps I can write to the hon. Gentleman if I can request their permission to be named. They acted in a personal and private capacity as part of the consultation following the Cabinet Office statutory instrument guidelines on consultations. The framework and process was a trusted one. I am sure that having an opportunity to give private views provided for a greater opportunity to scrutinise the legislation and to be more honest and robust as a result.

We assessed the impact of the SI using the better regulation framework in line with the Treasury’s Green Book guidance. It was obviously deemed to be less than £5 million, so a full impact assessment was not required. Analysis has been focused on the direct impact of the relevant SI compared with current legislation, and analysis of wider impacts on the UK’s exit from the EU has been previously published in the form of long-term economic analysis, which was published in November 2018.

On the impact on business and the conversion of existing rights to comparable UK rights, we have committed to ensuring that the administrative burden on business is minimal. The teams at the ICO are making good progress on numbering systems for the new comparable rights and will communicate the changes as soon as possible. The IPO will also publish guidance in every language of the EU on its website so that rights holders in every member state will be able to access all the necessary information on their UK rights.

When it comes to the process of notification both within the EU and the UK, the IPO will publish a standard website notice in all languages, as I have said, confirming that holders of re-registered UK designs and comparable UK trademarks have been granted equivalent UK rights. The notice will continue to remain on the website after exit, and individual notifications to holders of EU and international trademark designs will not be issued. We are confident that there has been significant interest that will be progressed towards the guidance being published.

If rights holders do not want to be given the new rights, the statutory instrument contains an opt-out provision that allows the holder of a comparable UK design or trademark to request that it be treated as if it was never registered in the UK. That process can be exercised via completion of a no-fee letter or email to the registrar, requesting an opt-out.

Several issues related to costs for businesses. This has been covered in interventions, but I state again that there will be no fee associated with the creation of the new UK rights. The comparable UK registered design or trademark rights will be independent from the corresponding EU rights. Obviously, there will continue to be charges for renewal. When the comparable UK right expires, the standard UK renewal fees will apply. In terms of comparable UK registered design, the renewal fee, which will be the same as it is at the moment, will increase for each successive five-year period of protection, from £70 for the first renewal up to £140 for the fourth and final renewal period. That is consistent with current practice. The holder of the comparable UK registered design will be required to pay these UK renewal fees in addition to those associated with the corresponding EU right in order to preserve protection in both the UK and the EU. For a comparable UK trademark, renewal fees will be charged according to the goods and services protected under the mark.

The hon. Member for Sefton Central raised the issue of the costs for Government—trading funds. The IPO receives no central Government funding, so costs are recovered through fees. In terms of the process for creating UK comparable rights, the actual process will be automated. Because these rights are currently valid and enforceable in the UK, the IPO already has access to related data—these are recorded in the IPO’s records system and published on web-based search platforms—and as a result we will be able to create the new comparable UK rights without a significant amount of additional work.

When it comes to the issues about preparation for EU exit by the IPO, resources have been managed as part of the preparations. That includes staff recruitment and training. The creation of new rights on exit day will not itself create a need for additional resources beyond those already being addressed as part of our business-as-usual operational management.

[Matt Western]

Can the Minister—perhaps in writing, because I assume that he will not have the numbers at his fingertips—provide detail about the staffing that has been brought in, to provide reassurance to businesses? They are really concerned. Intellectual property, as we well know, is an incredibly valuable thing for this country, and it would be very helpful for us to explain the scaling up that has been going on in that department.

[Chris Skidmore]

I thank the hon. Gentleman for his point. I would be happy to write to him with some of the details on the resource issues of staffing. I went to visit the IPO’s headquarters down in Newport and was deeply impressed by the organograms and the plans that it had put in place. Almost week by week and day by day, it has been planning for EU exit. Its staff morale is one of the highest for a Government organisation across the country, not just in Wales. I really got the sense that the IPO was content with the process, was managing the process and was a happy organisation in taking forward the process, but I will write to the hon. Gentleman on some of those details. I got no sense that there was undue pressure on the IPO as a result of the changes taking place.

Let me turn to the issues raised about designers and disclosure of unregistered designs. An unregistered design will need to be first disclosed in the EU to be protected in the EU should we leave without a deal. However, disclosure in the EU may have implications regarding any corresponding UK unregistered rights, such as the supplementary unregistered design and the existing UK unregistered design rights. This statutory instrument contains provisions to allow us to negotiate reciprocal arrangements on first disclosure with third countries, which may be the EU, individual countries within the EU, or more widely, but that will still be subject to future agreement.

If we retain first disclosure in the EU as a basis for establishing post-exit UK unregistered design, we will create an imbalance between the UK and EU systems, providing EU-based designers with an unfair advantage. Designs disclosed in the EU would count for establishing both UK and EU protection, whereas designs disclosed in the UK would count for establishing UK protection only.

The law in this area remains unclear, with prominent legal commentators disagreeing on the subject, but our approach reflects the published interpretation of the EU IPO. We think that that provides a more consistent approach for designers to understand and apply. The approach may be subject to future change if courts decide to take a different interpretation, but the SI does recognise disclosure in other qualifying territories, and although we will not have a reciprocal arrangement with the EU on exit day, we may have the opportunity to reach such an arrangement in the future.

Nissan in Sunderland

Matt Western Excerpts

Monday 4th February 2019 Commons Chamber

[Greg Clark]

I am impressed at the hon. Gentleman’s recall of the principles that he was taught. He is right that one of the benefits and sources of efficiency in our production system is that companies do not need warehouses or inventory. It is clearly a matter of huge regret that companies are having to invest in inventory and warehouses and divert capital from more productive uses. I agree that we need a deal and an agreement that allows just-in-time production to continue. I strongly share his analysis of that.

[Matt Western (Warwick and Leamington) (Lab)]

This is clearly a terrible decision for not only Nissan Sunderland and the whole north-east but the entire automotive industry, given how much of it depends on scale and component suppliers working to scale. The Secretary of State understands this sector particularly well. Does he accept that the industry wants a customs union and a single market? Does he accept that the Government have a responsibility to remove the diesel levy that they introduced two years ago?

[Greg Clark]

Obviously the hon. Gentleman has great familiarity with the industry, from his constituency perspective. The industry has consistently expressed itself satisfied with the deal that has been proposed. It has said so in terms at the overall level, through the Society of Motor Manufacturers and Traders, and individual companies have said so. The industry is concerned that this House has not come to a resolution to turn that agreement into something that it can depend on. I hope he will join colleagues from across the House in advocating the kind of compromise that will enable the whole House, not just by a slim majority but wholeheartedly, to agree a deal that can send confidence to investors in this industry and others around the world.

Furniture Manufacturers

Matt Western Excerpts

Wednesday 23rd January 2019 Westminster Hall

[Maggie Throup]

I completely agree, because the majority of upholsterers in my constituency are exactly the same type of company—small and medium-sized enterprises that employ people locally, generation after generation.

Consumer expenditure on furniture and furnishings was almost £17.5 billion in 2017 and exceeded all other spend in the household goods sector. That represents a 21% increase from 2014. Year-on-year growth in the sector between 2014 and 2016 rose from 4.8% to 6.9%, with growth between 2016 and 2017 higher still, at 7.9%. The latest data shows that furniture and furnishing sales continued to rise into early 2018, with first and second quarter consumer expenditure 8.5% and 8.3% higher, respectively, than for the equivalent periods in 2017, despite many other retail sectors experiencing an increasingly challenging market.

In addition, trade fairs such as the biannual Long Point exhibition, held in Long Eaton, continue to attract global attention from international buyers looking to stock some of the finest sofas and easy chairs the UK has to offer. That has led to a steady increase in furniture exports since 2012, peaking at £1.19 billion in 2017 and representing a 12.4% increase on 2016 figures.

The good news does not stop there. Provisional estimates for 2018 indicate that exports for last year could be higher still, at £1.27 billion, which would represent a year-on-year increase of 7%. Taken together, these figures clearly demonstrate that the appreciation of and the demand for hand-made British craftsmanship remains high, both nationally and internationally.

It is hard to speak in this place without mentioning Brexit, but I promise the House that I will keep my remarks brief and confined to two main areas—trade and export, and standards and regulations. Like all sectors, the UK furniture industry now just wants clarity and a degree of certainty over Brexit at the earliest opportunity, in order to preserve confidence in the UK as a stable business environment in which to invest, and to assist with business planning.

With specific regard to trade and export, the industry wants to ensure that the Government give serious consideration to the cost of importing materials, both finished and components, during the renegotiation of our relationship with the EU. For example, if the import of fine Italian fabric were to be interrupted, manufacturers in my constituency have voiced concerns that production may be significantly disrupted or even halted while they sourced material from elsewhere. Consequently, that would have a huge knock-on effect on the local workforce and would risk the financial viability of many of these small, often family-run businesses.

Britain is soon to regain its ability to negotiate independent free trade agreements, which I believe presents a fantastic opportunity for all UK businesses to access new markets outside of the UK and Europe—something that the furniture industry already has significant experience in doing. Given that there are 30% more furniture manufacturers that do not currently export but are planning to do so within the next year, I welcome the Government’s new five-year UK export support strategy, which provides manufacturers with further details of the package of support available to help exporters post Brexit. We also have a responsibility, as Members of Parliament with furniture manufacturers in our constituencies and as members of the APPG, to continue to bang the drum for the industry and ensure that they do not lose out to larger sectors during future trade negotiations.

I turn to standards and regulation. The UK already maintains some of the highest standards for furniture safety in the world, but here again clarity is needed on both product safety and the mutual recognition regime that the industry will have to work within post Brexit.

[Matt Western (Warwick and Leamington) (Lab)]

I thank the hon. Lady for bringing about this debate. Before she moves beyond Brexit, does she agree with me that some of the pressures that some of our small and medium-sized furniture businesses face come from the lack of support and assistance that they are getting from the Department for International Trade with exports and exchange rate facilitation, or even things like intellectual property rights?

[Maggie Throup]

As I outlined earlier, the Government have produced an export strategy, which I would encourage all SMEs to look at and take part in. That is one of my messages today.

I shall move on from Brexit. As shown across my constituency, furniture manufacturers require a highly skilled workforce to retain their international reputation for quality. The skills of an upholsterer are passed down from generation to generation—often in the form of an apprenticeship, then finely tuned over a number of years, which can span well past the usual age of retirement. The industry therefore needs support from Government to help it to bring new generations of craftsmen and women through the system with the right skills to ensure that this type of art survives throughout the 21st century.

Car Production: Solihull

Matt Western Excerpts

Wednesday 16th January 2019 Commons Chamber

[Julian Knight]

I was recently diagnosed as asthmatic, which, for someone who cycled up mountains less than two years ago, is a frightening and life-altering experience in many respects. I am very conscious of the fact my right hon. Friend raises, but we need to get it right so that we do not end up ensuring that older polluting diesels are kept on the roads longer because people are afraid to change them as they will lose money. We need to encourage people to transition to new technology, but at the same time, we need to fill that gap with cleaner diesel until the capacity is there.

[Matt Western (Warwick and Leamington) (Lab)]

I thank the hon. Gentleman for bringing this important and timely debate before us. Having worked with him and other colleagues on the automotive industry and Jaguar Land Rover, I know he shares my passion.

I think the hon. Gentleman agrees with me that the transition he describes is critical and that the Government must work with manufacturers to ensure that we get a co-ordinated, managed transition away from diesel and petrol towards cleaner fuels. Will he speak about diesel taxation and how we should not penalise consumers but support them in the transition? That would particularly help Jaguar Land Rover.

[Julian Knight]

The hon. Gentleman has put his thoughts on the record. He is correct about the transition, and we cannot ask car manufacturers to move at pace to those new technologies and then take EU policy that could potentially damage the income streams that allow them to invest. We need to be nuanced and thoughtful about that while protecting our environment.

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[Richard Harrington]

And indeed myself, although not at taxpayers’ expense. In addition, it is not a “supertoy”; it is a more modest model.

Tonight’s subject is very important and I wish to thank other Members who have contributed. Jaguar Land Rover has an excellent group of MPs in the area, and I was pleased to meet them last week to discuss the announcement that was made. [Interruption.] I see the hon. Member for Warwick and Leamington (Matt Western) shaking his head. I do hope I have not affronted him if I have not met him—most Members were there. If I have, I really apologise and I will make sure he is always invited.

[Matt Western]

I do not believe I was invited, but I very much hope that I will be invited in future.

[Richard Harrington]

If the hon. Gentleman was not invited, I would like to apologise to him. This was all done at the last minute. I will meet him whenever he likes, either informally or in a meeting with officials. The point I was making is that JLR is a cross-party matter, and it is treated in that way by the Government and by the company.

In the time we have, I wish briefly to outline the steps the Government have taken since JLR announced last Thursday that it will reduce its global workforce by about 4,500 people. I will then move on to address the arguments put forward by my hon. Friend the Member for Solihull. As he highlighted, the UK automotive industry remains one of our great success stories, and global demand for UK designed, engineered and manufactured vehicles is strong. Our industry is regarded internationally as very productive. Our industrial strategy builds on these strengths and invests in the future, to put the UK at the forefront of the next generation of electric and autonomous vehicles. JLR is a key part of our automotive manufacturing base, supporting high-quality jobs, both directly and across the automotive supply chain.

As my hon. Friend noted, last Thursday, Jaguar Land Rover confirmed that it is offering voluntary redundancy packages to its UK workforce, to reduce the headcount. As this is a voluntary redundancy programme, the company cannot give any figures on the number of Solihull workers who might be affected. However, JLR has made it clear to us, in a call that the Secretary of State and I had with its chief executive just before the announcement, that those working on production lines are not part of this programme; this predominantly relates to marketing and management staff. I do not make light of that; these people will be made redundant—we hope it will be with their agreement—and what job they do does not particularly matter. He also stressed to us that the apprenticeship programme, which has been supported so well by my hon. Friend and other local MPs, will continue, as will graduate recruitment and the recruitment of specific staff that the company needs.

The decision to offer these redundancies is the next phase of a £2.5 billion “Charge and Accelerate” turnaround plan, which the company announced last September. As I say, I have spoken several times to the chief executive and he has explained how these redundancies will streamline the business and help to ensure the company’s long-term health for the future. As I say, I do think a lot of every member of staff and their families, who face an uncertain time. I assure the House that we are working closely with colleagues throughout the west midlands to offer whatever support we can.

We are also working to support the company itself. We have a long-standing relationship with the firm and its parent company in India. Since the turnaround plans were announced last September, we have worked even more closely with the company in support of its long-term strategy as it invests and transitions to autonomous, connected and electric vehicles.

--- Later in debate ---

[Richard Harrington]

I do not have it within my power to shout from the rooftops, but I will shout from this Chamber for those people who are listening. The new clean diesels are really, really good. I confess to having a penchant for this particular kind of vehicle.

[Matt Western]

I thank the Minister for being so generous with his time. Let me return to this important point. He is speaking about shouting from the rooftops. Perhaps the most critical point to shout about is taxation. I appreciate the points that have just been made by the hon. Member for Solihull (Julian Knight). There is a global issue, as we have seen in north America and across Europe, on diesel, but it is in the Government’s gift to change taxation and not to penalise. The maximum vehicle excise duty addition that was put in was £560 on a vehicle.

[Richard Harrington]

I am bursting to respond to the hon. Gentleman’s point, but I have two minutes left, Madam Deputy Speaker, and I do not want to torment your time—well, you will not let me; you would tell me not to.

My hon. Friend made the same point. I am pleased to remind the House that, on 19 December, the Treasury published a review of the impact of the worldwide harmonised light vehicles test procedure on vehicle excise duty and company car tax. The review is open until 17 September[Official Report, 21 January 2019, Vol. 653, c. 2MC.]. Officials from the Department have been working closely with Jaguar Land Rover and others to ensure that the industry’s evidence is considered in the review and I look forward to the outcome.

I congratulate my hon. Friend. He really is a major spokesman for the company, together with his colleagues,. This debate is but a small part of the work that he does. My door is always open to him and to the company. I look forward to a great future for Jaguar Land Rover, and I know that the west midlands will be a key part of that.

Question put and agreed to.

Oral Answers to Questions

Matt Western Excerpts

Tuesday 20th November 2018 Commons Chamber

[Richard Harrington]

As the hon. Gentleman knows, each deal with each city is an individual one based on the circumstances of that city. I see him regularly, and it would be a pleasure to meet him to discuss his constituency and the proposed city deal.

[Matt Western (Warwick and Leamington) (Lab)]

18. [R] In terms of leaving the EU and our manufacturing sector, does the Minister not accept that staying in the customs union and in a form of single market is absolutely what is demanded in the long term—not “xx”—by our manufacturing sector?

[Richard Harrington]

The hon. Gentleman must be aware that the EEF has warmly accepted the Government’s proposals for a future trading relationship that will provide the kind of frictionless trade essential for his constituents and everyone else who works in the motor vehicle industry and the manufacturing sector.

Budget Resolutions

Matt Western Excerpts

Wednesday 31st October 2018 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

Just over a month ago, in Birmingham, the Prime Minister trumpeted that austerity was finally over. On Monday, in his Budget statement, the Chancellor was more sanguine, claiming that austerity was not over but “coming to an end”. Perhaps most disappointing was the disingenuous claim that austerity had been a necessity, that there was no choice and, indeed, that austerity had not been driven by ideology.

Let us be clear, austerity is and was a choice. The path chosen by the Chancellor’s predecessor, George Osborne, was totally opposite to that chosen in the US, where Barack Obama introduced the American Recovery and Reinvestment Act in 2009, a Keynesian package of economic stimulus that has resulted in the highest and most sustained recovery of all G7 countries in the period since the global financial crash—and it was a global financial crash, irrespective of what the right hon. Member for Haltemprice and Howden (Mr Davis) may say.

Monday’s Budget announcement was particularly important, because we are at a pivotal point—a point at which the economy is faltering, and where we face huge uncertainty and, according to the Office for National Statistics, the most serious economic damage from Brexit of between a 2% and 8% drop in gross domestic product, depending on the deal. In fact, UK growth is the lowest of the G7 countries—almost half that of the EU composite and more than half that of the US and the OECD countries.

Our benign growth has been kept afloat these past years by consumers enjoying super-low interest rates and sizeable gains from windfall payments due to the banks and other financial institutions’ mis-selling of payment protection insurance—some £40 billion so far, and another £18 billion likely, according to recent reports. Even before the additional sum, that equates to between 1% and 2% of GDP, or an additional £1,000 for every adult in this country. That is a significant sum; a significant stimulus. I shall use two sectors to evidence the impact of such sums on the economy: record sales of cars and new kitchens in recent years, as consumers have cashed in on those payments to finance high-ticket items.

Now we face reality: consumer confidence is trending downwards and is not far off the level it was at in 2010. New car sales, generally a good proxy for consumer confidence, were down 20% in September and 8% year on year. Household debt is rising at an alarming rate, unsecured debt in particular—debt because people cannot afford to live. Universal credit is hurting, not helping, and with the rising use of food banks and the explosion in the use of payday lenders, the pressure on households is greater than ever as more and more people face the phenomenon of in-work poverty. Also, as the right hon. Member for Sevenoaks (Sir Michael Fallon) highlighted, savings have fallen dramatically in the past year or two.

The claim by the Chancellor that we are witnessing a jobs miracle is yet another line from the George Osborne songbook. This is no jobs miracle; it is a jobs mirage. How else do we account for underemployed, zero-houred and insecure employment? There is low capital investment because labour is so cheap and flexible in the UK—easy to hire, easy to fire, so why invest in machinery and plant that could improve productivity? It is not a productivity puzzle; it is simple.

Elsewhere, we are seeing lay-offs and shutdowns in the jewel of our manufacturing sector, the car industry. Production was down 17% in September, 7% in the year to date, and by 19% in our domestic market. Clearly, there are particular issues with testing regimes but, beyond doubt, the introduction in last November’s Budget statement of a hike in vehicle excise duty on diesel has been particularly damaging to the UK car industry, especially Jaguar Land Rover. Without the revenues and the profit, there can be no investment in the transition from the internal combustion engine to alternative fuels. That is what the industry sought from the Chancellor—support, not damage.

While I am disappointed by the lack of immediate support for the car industry—a sector so vital not only to the UK economy but to the people of Warwick and Leamington—the failure of this Budget to address the desperate needs of our schools, police and fire and rescue services is just as notable. Without the investment in our children’s education, our health service, our security and our infrastructure, we will fail tomorrow. Expenditure now—investment—is the lifeblood of our future. Giving £110 billion in corporate tax giveaways by the end of this Parliament denies us the means to do this. Somehow the Chancellor believes that £10,000 for a primary school to help with those “little extras” like books and pens is good governance: try telling that to the children who have lost their teaching assistant.

In years to come, economic historians will come to view this period as the UK’s lost decade—years when so much could have been achieved had the trajectory of growth of late 2009 and early 2010 been maintained. It was stifled by ideology; a Government in the spirit of 1945 would have secured it.

Oral Answers to Questions

Matt Western Excerpts

Tuesday 12th June 2018 Commons Chamber

[Greg Clark]

My hon. Friend is right that the consequences have to be borne by the companies that cheated the system. We need to make the transition to ultra low emission vehicles to make sure that we lead the world in this area. Just a few weeks ago, Toyota announced a big investment in the future of mobility here in the UK, based on the commitments that we are making as part of our industrial strategy.

[Matt Western (Warwick and Leamington) (Lab)]

21. Scrappage schemes have been used in the past to assist businesses and industries in a transition. Has the Minister costed a support package to scrap old diesel vehicles and assist in a managed transition to renewable/alternative energy vehicles?

[Greg Clark]

The hon. Gentleman is right that we need to see a managed change. Earlier, my right hon. Friend the Minister for Energy and Clean Growth pointed out that the next generation of diesel can play a big part in not only reducing greenhouse gas emissions, but improving air quality. We will shortly be setting out our proposals on how we make the important transition to zero emissions across our vehicle fleet.

Nuclear Power

Matt Western Excerpts

Monday 4th June 2018 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. I had the pleasure of visiting the National College for Nuclear in Somerset a couple of weeks ago. Seeing the opportunities that will be available to the next generation of nuclear engineers is an inspiring sight. I am pleased that this is now available for them.

[Matt Western (Warwick and Leamington) (Lab)]

The Secretary of State will be well aware that several years ago the German Government took the decision to decommission their nuclear reactors and invest heavily in renewables and other suppliers. Given the significant cost advantage of offshore wind and the UK’s geographic advantage in delivering it, what do the UK Government know that the German Government do not?

[Greg Clark]

I am surprised the hon. Gentleman mentions that, because one of the problems Germany has faced is that the return to coal has increased the pressure on its greenhouse gas emissions. I checked before I came into the Chamber, and coal was contributing just 1% of our current electricity generation, compared with 20.5% from nuclear. If we are serious about meeting our climate change ambitions, we have to take decisions that are consistent with that.