Michael Fallon
Main Page: Michael Fallon (Conservative - Sevenoaks)Department Debates - View all Michael Fallon's debates with the Department for Education
(11 years, 10 months ago)
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Andrew Stephenson (Pendle) (Con)
6. What assessment he has made of the effect of the regional growth fund on job creation in the north-west.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
To date, 59 projects in the north-west have been awarded a total of £225 million. In addition, £153 million has been granted to 16 programmes, specifically aimed at supporting small and medium-sized enterprises in the region. Taken together, this money will help create tens of thousands of jobs in the north-west.
Andrew Stephenson
The regional growth fund has been a great help to businesses across Lancashire and the north-west. In the next round my right hon. Friend can expect to see some excellent bids from Pendle. Will he confirm that he will look closely at these fantastic bids? If they are approved, they will be a real boost to Pendle and east Lancashire.
Michael Fallon
I certainly will. I am grateful to my hon. Friend for reminding the House that the fourth round of the regional growth fund is now open. I urge any colleague in the House to encourage potential applicants to apply before 20 March, not least because the fund is proving good value for money. In the north-west it is leveraging in some £5.50 for every £1 of public money spent—some 10 times the proportion of the unlamented regional development agency.
Nick Smith (Blaenau Gwent) (Lab)
Will the Minister confirm that the average cost of jobs created by regional growth funds such as that in the north-west is £33,000? This is more than the cost of jobs created by the regional development agencies, which the Government abolished.
Michael Fallon
No, I cannot confirm that figure. This is taxpayers’ money for projects that would not otherwise go ahead. They are recommended by an independent advisory panel as good value for money and they are subject always to proper due diligence.
Ian Lavery (Wansbeck) (Lab)
7. What discussions he has had with Royal Mail regarding its privatisation; and if he will make a statement.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
I regularly meet Royal Mail and the Communication Workers Union to discuss a future share sale. Since Parliament decided to secure the universal postal service through the Postal Services Act 2011, we have relieved Royal Mail of its historic pension deficit and established a new regulatory regime. The final step is to give Royal Mail access when it needs it to private capital and to honour Parliament’s commitment that at least 10% of the shares will be made available to employees.
Ian Lavery
Royal Mail is the jewel in the crown of this nation, and it is cherished by millions. There are grave concerns about the privatisation of Royal Mail in terms of price hikes, job losses and a reduction in services. May I urge the Minister to withdraw the privatisation plans and invest heavily in a publicly owned Royal Mail?
Michael Fallon
It would be very odd to deny Royal Mail—a business with a turnover approaching £9 billion—access to the capital markets that other large, successful companies enjoy, and which it will need in order to innovate and invest for the future. It would also be wrong to withhold from its 130,000 staff the chance that Parliament has given them to own shares in the company.
Mr Robin Walker (Worcester) (Con)
Having served on the Committee that considered the Postal Services Bill, I welcome my right hon. Friend’s determination to implement the will of this House and to succeed where the previous Labour Government tried and failed. Is it not clear that for Royal Mail to benefit from the enormous growth in online retail, and consequently in its parcels business, it needs to be free to invest without competing for scarce public money?
Michael Fallon
My hon. Friend puts it very well. Royal Mail, like any business, needs capital to be sustainable over the long term in order to continue to improve its efficiency, to invest, to innovate, and to seize the opportunities presented by new markets, not least those arising from online retailing. It should not have to compete for scarce public capital against other services such as schools and hospitals.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
What measures will the Minister put in place to ensure that Royal Mail is not taken over by a private equity firm following privatisation?
Michael Fallon
No decision has yet been taken on the timing and size of any share sale. The key is to ensure that a big, successful company is no longer denied access to the capital markets.
Ian Murray (Edinburgh South) (Lab)
This week Royal Mail reported that it had selected a number of agencies to assist in the
“largest privatisation since British Rail”.
The Ofcom consultation, “End-to-end competition in the postal sector”, has stated that that is not relevant to its primary duty of protecting the universal service obligation as regards rival operators cherry-picking profitable Royal Mail work without having to meet its high standards of same-price, every-place, six-days-a-week delivery. What guarantees can the Minister give that Royal Mail’s service standards will not be put at risk? Does he share my deep concerns about Ofcom’s stance on end-to-end competition?
Michael Fallon
Only the ideologues on the Labour Benches could possibly want to continue to block the access of this company to the private capital markets. Let us be clear: Parliament gave Ofcom a clear statutory duty to secure the provision of the universal service six days a week, and we expect it to carry that out. Ofcom’s consultation on delivery competition has now closed, and it will issue its guidance in the spring, subject to that duty to safeguard the universal service.
Mr Philip Hollobone (Kettering) (Con)
8. What the tobacco industry exports which created 2% of Egypt’s sovereign debt owed to UK Export Finance were used for; when those exports were made; and whether they were to the Government of Egypt or to private companies.
Mr Jim Cunningham (Coventry South) (Lab)
10. What discussions he has had with the Secretary of State for Defence on the development of the Government’s strategic defence review.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
Preparations for the review are under way. My Department is fully engaged on the industrial aspects. Together with Steve Wadey from MBDA, I co-chair the defence growth partnership, which is addressing the competitiveness of the defence sector and especially how we can better exploit the links between civil and military technologies.
Mr Cunningham
May I do something unusual, which is to thank the Secretary of State and the Minister for their help in saving the London Taxi Company in Coventry? What discussions has the Secretary of State or the Minister had with Rolls-Royce on the possible impact of its decision on the supply chain and through job losses?
Michael Fallon
I know that the hon. Gentleman and the hon. Member for Coventry North West (Mr Robinson) discussed that matter in the Department on Monday. I met Rolls-Royce yesterday. I understand that its decisions have to be made primarily in response to changes in key international defence programmes. If the hon. Gentleman is referring to the potential decisions about Ansty, he will know that any run-down there is expected to take several years and that no final decision has been taken.
Peter Luff (Mid Worcestershire) (Con)
The biggest threat to British defence companies is the shortage of engineering skills. That threatens our prosperity, their success and our security. I therefore invite my right hon. Friend to look as sympathetically as possible at the ten-minute rule Bill that I will introduce next week, which aims to inspire more young people, especially girls, to take up the exciting opportunity of pursuing a technological or engineering career.
Michael Fallon
I am grateful to my hon. Friend. He will know that the number of engineering apprenticeships and applications to study engineering are already increasing. The skills needs of the sector will be a key focus for the defence growth partnership.
Duncan Hames (Chippenham) (LD)
Redundant Ministry of Defence sites can blight a local area, but they also offer the potential for new jobs and brownfield development, as is recognised by the Swindon and Wiltshire local enterprise partnership. Will the Minister recognise that in any advice that he gives to colleagues when they are considering the bids for the second wave of city deals?
Michael Fallon
That was a most ingenious formulation in support of the bid from the Swindon and Wiltshire local enterprise partnership in wave 2 of city deals, which is under consideration at the moment. I will ensure that the use of redundant land is one of the aspects that we consider.
Ann McKechin (Glasgow North) (Lab)
11. What assessment he has made of the effect on consumer behaviour of Government advice on debt.
Stuart Andrew
A number of businesses in my constituency that I have visited have reported welcome news of an increase in orders from abroad. However, they have raised concerns about the time it takes to get export licences. In order to help those companies to remain competitive, what is my right hon. Friend’s Department doing to try to speed up efficiency in that respect?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The Export Control Organisation is currently meeting its primary target of approving 70% of licence applications within 20 working days. Last year, it met its secondary target of approving 95% within 60 working days. However, I well understand the frustration of legitimate exporters. The ECO is working with the Foreign Office to improve performance still further.
Mr Chuka Umunna (Streatham) (Lab)
The EU Council is gathering as we speak. From the common agricultural policy to the absurdity of the European Parliament sitting in two places, it is clear that the EU needs reform. It is also clear—to the extent that any reform involves a significant transfer of power from Parliament to the EU—that we all agree there should be a referendum. Does the Secretary of State agree that, although reform is crucial, the immediate priority for British business is to grow our economy, and that continued membership of the EU is fundamental to that goal?
Simon Hart (Carmarthen West and South Pembrokeshire) (Con)
T4. Will the Secretary of State join me in congratulating Sam Davies from Whitland in Carmarthenshire for doing so well in the “We Made It” competition recently? Will he also get behind that competition, as it encourages so many young people into STEM-based jobs?
Michael Fallon
I am grateful to my hon. Friend. Yes, we welcome the “We Made It” competition. Manufacturing offers young people enormous scope to do something really worth while and to be well rewarded in the process. Through programmes such as See Inside Manufacturing, we are ensuring that young people see for themselves the wealth of career opportunities in manufacturing, and understand how studying science, technology and engineering at all levels leads to well-regarded career opportunities.
Kate Green (Stretford and Urmston) (Lab)
T6. The Secretary of State is aware of concerns about anti-competitive practices in the waste electrical and electronic equipment recycling market. What will he do to protect the position of small and medium-sized recycling companies such as Mercury Recycling in my constituency? Will he meet me to discuss this issue and wider concerns?
Bridget Phillipson (Houghton and Sunderland South) (Lab)
The Secretary of State knows that Nissan is vital to the north-east’s long-term economy and provides much-needed jobs and investment. Is there not a significant risk that the uncertainty about Britain’s future in Europe, which will continue for many years, could jeopardise this?
Michael Fallon
I am well aware of Nissan’s importance to the north-east. I visited recently and have spoken to the senior management at Nissan about the Prime Minister’s speech to reassure them that we see a future for this country within a protected and enhanced single market. That is what is important for Nissan and many other companies in the sector.
Dr Julian Huppert (Cambridge) (LD)
T9. My right hon. Friend will be aware of the growing funding problems for postgraduate students. Most have to pay large sums up front, borrowing from banks or their families if they are rich enough, which creates huge social mobility problems. Has he had a chance to look at the proposals in my policy paper, “Developing a future: Policies for science and research”, or, indeed, the very similar proposals from the Higher Education Commission and the National Union of Students?
Mr Dennis Skinner (Bolsover) (Lab)
In an earlier question, on the privatisation of Royal Mail, the Minister deliberately referred to the fact that shares would be sold off to the people in Royal Mail. It almost harks back to the “share-owning democracy” of Mrs Thatcher, when she privatised all the public utilities and almost without exception those public utilities—E.ON, EDF and all the rest—are now owned by Germany, France, Spain and even further afield. That is what happens to share-owning democracies. Instead of gazing into crystal balls, read the history!
Michael Fallon
I not only read the history, I remember the history because I was here, when the hon. Gentleman and his colleagues—
Michael Fallon
I voted for it, and he and his colleagues advised the workers in BT—[Interruption]—not to buy the shares and more than 90% of them did buy them. In this instance, Parliament has quite rightly provided that up to 10% of the shares should be reserved for employees. I think that the more than 130,000 people who work for Royal Mail should have the chance to share in the success of their company.
Stephen Mosley (City of Chester) (Con)
There will be no swearing in my question.
My right hon. Friend the Minister for Universities will be aware of Chester university’s great success in getting industrial support. The vice-chancellor, Professor Tim Wheeler, the hon. Member for Ellesmere Port and Neston (Andrew Miller) and I all have a free spot in our diaries on 1 March. I was wondering whether my right hon. Friend would come and join the celebrations with us.