Summer Adjournment

Mel Stride Excerpts

Tuesday 19th July 2011 Commons Chamber

[Robert Halfon (Harlow) (Con)]

I declare a lifelong interest in this subject and refer Members to the Register of Members' Financial Interests. I am delighted to have the opportunity to speak in this debate, because I want to talk about a tale of British craftsmanship at its best, our failure to compete and a remarkable industrial revival.

The automatic watch is almost the same now as when it was invented in 1770 and it has often triumphed over computers. For example, in 1970, after Apollo 13 was crippled by a ruptured oxygen tank, Jack Swigert’s Omega Speedmaster was famously used to time the critical 14-second engine burn, allowing for the crew’s safe return. Even today, the Omega Speedmaster is still the only watch to have been worn on the moon.

Secondly, I wish to discuss British craftsmanship. London led the world, changing the course of history in the 17th century by manufacturing accurate clocks that allowed us to sail throughout the world, trade, make maps and acquire the British empire. British companies such as Smith and Son, George Graham, Josiah Emery, and J. W. Benson forged the first clock-making industry, despite outbreaks of the plague and the great fire of London. Many hon. Members will know the story of John Harrison, a self-educated English clock maker who solved the problem of longitude and was eventually awarded thousands of pounds from Parliament.

Sadly, in the 18th and 19th centuries Britain lost its expertise. The decline of our watch industry is a British parable, just like the tin can.

[Mel Stride (Central Devon) (Con)]

My hon. Friend shares with me a love of watches. I know that he is also passionate about apprenticeships, so does he have anything to say about their importance in this area?

[Robert Halfon]

I will answer my hon. Friend in my later remarks, and I thank him for his intervention.

The decline of our watch industry is a British parable, just like the tin can and the car assembly line: we invent but others capitalise. In 1800, London was producing some 200,000 watches a year, which were exported not just to Europe, but to Russia, the middle east and even China. However, we became trapped by tradition. After Napoleon’s defeat in 1814, the Swiss started to make machine-made copies of London clocks and flooded the market with cheap products. Britain responded with protectionism and price controls. We failed to compete, and our expertise was lost to Switzerland, America and even the far east.

However, there has been a revival in recent times. In 1923, the British National Physical Laboratory produced quartz oscillators, and we all know about the production of the atomic caesium clock in 1955. These are the foundation of telecommunications, satellites and space travel. Famous British household names in horology have resurfaced: Dent & Company, and J & T Windmills, which even has a factory in Essex. Today, we have one of the greatest living names in horology, George Daniels, a British man who invented the coaxial escapement, which is the first practical new watch escapement in 250 years; it is a smoother watch movement that almost eradicates friction, and it was commercialised in 1999 by Omega. Those who have done the most to support this revival in Britain are the British Horological Institute and the Worshipful Company of Clockmakers. We have lost out to Switzerland and the far east, but we still have repair shops, a wealth of academic study and some ultra-high-end manufacturing.

So what is to be done? I welcome the Government’s policy on apprenticeships and the work of the Minister for Further Education, Skills and Lifelong Learning, who is in his place, in his promotion of craft. As I mentioned in my early-day motion 623, our funding for skills qualifications must be open to small specialist courses for industries such as horology. I strongly welcome what the Government did last year to extend funding for BHI certificates in clock and watch servicing, and repair, and I am grateful to the Leader of the House for his letter of support in that campaign.

However, there is a wider issue to address: many smaller qualifications are being discontinued because they are not profitable enough for awarding bodies. There are now just three horology training facilities in the UK: Birmingham City university; West Dean college; and the British School of Watchmaking. In Harlow, we are very lucky to have the Eversden family of watchmakers, and they show that in an age of digital technology there is still a public demand for the crafts of old. As George Daniels proved, there is still a demand for British horological genius. I hope that all possible support will be given to the watch-making and clock-making industry, which was once dying but is now showing signs of life in Britain today.

--- Later in debate ---

[Mel Stride (Central Devon) (Con)]

I very much welcome this debate and the opportunity to speak about the importance of the growth of business to our economy. In doing so, I should express a personal interest, in that I have a majority holding in a small private company.

The Government have set the stage well for business growth, in that we have at least avoided being where Greece and Ireland are and where Portugal is teetering on the brink of being. Our economy is fundamentally sound and growing. That is happening against a backdrop of our having inherited the worst budget deficit in the G7 and against the more recent headwinds of the spikes in the oil price—it has increased by 60% in the past year—and the eurozone crisis, which we are all facing at the moment. Although some of the Labour Members who are shaking their heads may disagree with that, I am sure we can all agree that if we are to move away from a debt-driven, public sector-reliant economy into manufacturing and exporting, creating private sector jobs will be vital. I welcome the fact that the Government have done that over the past year, creating 500,000.

We must do whatever we can to support business and I welcome the fact that the Government have intervened in a number of critical ways. The first is Project Merlin, which aims to get the largest five banks lending another £190 billion to small and medium-sized businesses. I know from such businesses in my constituency that that is vital and I urge the Government to maintain that progress.

I also welcome what the Government are doing about red tape through the one in, one out rule on regulation, through embracing the recommendations of Lord Young’s review, which is extremely important, and through the work done by my hon. Friend the Minister for Further Education, Skills and Lifelong Learning on apprenticeships, on which this Government have a particularly proud track record, much of which is down to the personal commitment that he has shown in this vital area.

I also think that Government should get out of the way of business. It is important that we get taxation on businesses down. Over the next four years, as hon. Members will know, the corporate tax rate will fall by 5%, but that is not good enough. We need to do even more. When our local and national tax rates combined are compared with those of other countries in Europe they show that we are doing pretty well: in Germany, they are at 30%, in France at 34% and we are at 26%. However, when we look further afield, as we must when we consider the competitive pressures of the future, we see that places such as Hong Kong and Singapore have combined rates of 16% to 17%. I urge the Government to keep pressing firmly in that direction.

Let me make two more important points. First, although we have avoided the worst excesses of what Labour planned to do with national insurance, although it is expensive to lower national insurance as it is one of the three great revenue raisers of taxation and although I recognise and applaud the fact that the Government have introduced national insurance holidays in most regions of this country for new business start-ups, we must do more. It is a tax on jobs and we must start to get the figures down.

Secondly, micro-businesses—those that employ 10 or fewer employees—represent 96% of the businesses in this country and employ 700,000 people. We must get the number of onerous regulations for that group down. In particular, we should consider paternity and maternity rights and the idea that employees can leave the work force for 26 weeks or up to 52 weeks-a-year and their jobs must be held open. That needs to be considered and perhaps relaxed for those businesses, and I would welcome the Minister’s comments on that.