Oral Answers to Questions
Michael Fallon Excerpts(9 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mark Menzies (Fylde) (Con)
6. What steps he is taking to promote regional growth.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
We want to see growth that is sustainable and balanced, but it is local businesses and civic leaders who best understand what drives growth in their area. Through local enterprise partnerships they will have at least £20 billion to allocate until 2020.
Mark Menzies
May I take this opportunity to welcome the Government’s proposed plans to build a high-speed rail network between our great northern cities? In the light of that announcement will the Minister assure me that local businesses in Fylde and the local enterprise zone in Warton will continue to receive the full support of Government to promote growth in west Lancashire?
Michael Fallon
Yes, I give my hon. Friend that assurance and tell him that we hope before the summer recess to agree a growth deal with the Lancashire local enterprise partnership, centring on the arc of prosperity it has identified alongside Lancashire’s huge strengths in energy, manufacturing and engineering.
Nick Smith (Blaenau Gwent) (Lab)
On support for regional growth, when will the financing be agreed for the electrification of the south Wales valleys train lines?
Michael Fallon
I shall certainly raise that with my colleagues in the Department for Transport. I do not have the date to hand, but I hope that the hon. Gentleman will welcome that investment.
John Stevenson (Carlisle) (Con)
17. Does the Minister agree that it is incumbent on local government leaders, LEPs and local MPs to work with local businesses to ensure that places such as Carlisle maximise their potential as an economic powerhouse in their region? Does he agree also that local government and local businesses are as important as national Government in promoting growth and job creation?
Michael Fallon
Yes, I absolutely agree. I thank my hon. Friend and his colleagues for their input into the Cumbria economic plan. I saw that close working for myself when I chaired the recent Cumbria forum on advanced manufacturing.
Martin Vickers (Cleethorpes) (Con)
Regional growth is dependent on good transport connections, and there has been widespread concern in northern Lincolnshire among the business community about the threat to services on the south transpennine line. Will the Minister agree to meet a delegation of business leaders from northern Lincolnshire to discuss that and other issues?
Michael Fallon
I am very happy to meet any delegation of business leaders with my hon. Friend. I am not the Minister for rail transport, but I shall certainly refer the issue to the Department for Transport, and I am happy to have the meeting that my hon. Friend requests.
Mr Nigel Evans (Ribble Valley) (Con)
7. What additional funding for training his Department has provided to support unemployed people and people aged 16 to 24 to get into employment.
Andrew Rosindell (Romford) (Con)
10. What steps he is taking to reduce the burden of regulation on businesses.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
We have significantly reduced the burden of regulation on business. The one-in, two-out rule has cut the annual cost of domestic regulation by £1.2 billion so far, and the red tape challenge has identified over 3,000 regulations to be scrapped or improved. To ensure that all future Governments remain committed to reducing burdens, the Small Business, Enterprise and Employment Bill published yesterday requires Governments to publish a target for removing regulatory burdens in each Parliament and to report against it.
Andrew Rosindell
I thank my right hon. Friend for his excellent reply. Does he agree that for business and enterprise to flourish, particularly in constituencies such as mine that have many small and medium-sized enterprises, we must stop the strangling of business by regulation from the European Union, and that means that the Prime Minister is doing absolutely the right thing in trying to reform Europe so that business can flourish in this country?
Michael Fallon
I completely agree with my hon. Friend, and I can tell him that of the 30 specific reforms requested by the business taskforce I chaired last year, nine have already been delivered, two further directives were withdrawn last month, and since the transposition rules were tightened three years ago there has been only one example of a European directive being gold-plated, which was the consumer credit directive that banned excessive payment surcharges.
Toby Perkins (Chesterfield) (Lab)
The Bathroom Manufacturers Association is just one trade body which feels that regulatory policy has too little focus on enforcement of regulation. That leads to the undercutting of compliant, high-quality British manufacturers by cheap, non-compliant foreign imports. When will the Government understand that a mature and consistent approach to enforcement of regulation is not a burden on high-quality British manufacturing business, but an aid to it?
Michael Fallon
I am happy to meet that trade association to follow up its specific concerns. The hon. Gentleman is right that business needs uniform and proportionate enforcement, and we are looking to deliver that through improved guidance with the relevant bodies, such as the Health and Safety Executive and the Environment Agency.
David Mowat (Warrington South) (Con)
11. What steps his Department is taking to support energy-intensive industries.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
In the Budget the Government announced a package of support of £500 million a year for energy-intensive industries. From 2016, we will introduce compensation for the costs of the renewables obligation and the feed-in tariff. We will also be extending to 2019 the compensation scheme for the emissions trading scheme and the carbon price floor. Together with amendments to the carbon price floor, these changes will be worth around £7 billion to businesses in Britain.
David Mowat
My right hon. Friend will be aware that several of our EU competitors are increasingly cross-subsidising industrial use of electricity, creating a difficult landscape for our energy-intensive industries. A recent example of the impact of this is BOAL Aluminium, an aluminium processor which was going to invest £2 million in the UK but has moved that, with all the associated jobs, to Belgium, where energy costs 30% less. Is there more we can do to prevent carbon leakage of that type?
Michael Fallon
I am grateful to my hon. Friend for bringing representatives of the aluminium industry to see me in the Department. It is important that we in Britain do not lose out on such investment. We have already paid out some £30 million of compensation to 53 of the most electricity-intensive companies and we will continue to press for further reform in Europe.
Nic Dakin (Scunthorpe) (Lab)
It is good that some support is coming from 2016, but energy-intensive industries need support now in the challenging times they face. It is good that the Government have finally got their package of compensation for their unilateral carbon floor tax through Europe, but the Minister has previously given commitments to get that backdated to 2013, as promised to business. What progress has he made in getting that compensation backdated?
Michael Fallon
It took some 18 months to get that compensation scheme approved by the Commission, which is why it will take some time to get the compensation for the renewables obligation and the feed-in tariff and why that scheme will not apply until April 2016. The Commission did not agree to our request for backdating.
Mr Iain Wright (Hartlepool) (Lab)
The hon. Member for Warrington South (David Mowat) asked exactly the same question in April and today received pretty much word for word the same unsatisfactory response. The fact is that the Government have imposed a unilateral carbon price floor that is widely divergent from the EU emissions trading scheme, which has put Britain’s energy-intensive industries at a competitive disadvantage to our European counterparts and done nothing to prevent carbon leakage or encourage investment in low-carbon energy. What practical steps is the Minister taking to shape reform of the ETS to make it more credible and to level the playing field for British industry, or have the Government lost that battle in Europe too?
Michael Fallon
Other countries such as Germany can of course offer higher support to their industries, but they did not have the appalling deficit that we inherited, because of course they did not have a Labour Government. I intend to ask the new Commission this autumn for an early review of the ETS and to include new sectors, such as cement, that have missed out so far.
Jack Lopresti (Filton and Bradley Stoke) (Con)
12. What support his Department is providing to apprenticeships.
Neil Carmichael (Stroud) (Con)
14. What assessment he has made of recent trends in the level of manufacturing.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
Office for National Statistics figures for April show that manufacturing output in the UK rose by 4.4% year on year—the fastest pace since February 2011. Industrial production rose by 1.1% in the three months to April compared with the previous three months—the strongest three-monthly growth since June 2010.
Neil Carmichael
I thank the Minister for that encouraging answer. With the need for more skills in energy engineering in mind, does he agree that it is a very good idea to have a centre for those skills at the now-decommissioned Berkeley power station, and that that represents a significant step in the right direction for the long-term economic plan?
Michael Fallon
Yes, I do agree. That project is a key part of Gloucestershire’s economic plan, and it can provide the skills that we will need for the next generation of nuclear power stations at Hinkley and Oldbury. We are currently considering Gloucestershire’s request for local growth funding to support the project. I hope to announce the allocation for Gloucestershire as part of the growth deal before the summer recess.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
16. What recent support his Department has provided to small businesses.
Mr David Nuttall (Bury North) (Con)
On the issue of new EU legislation, does my right hon. Friend agree that it would benefit British business if the EU adopted the same one-in, two-out rule that the UK Government apply?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
It is encouraging that the one-in, two-out rule, or the one-in, one-out rule, is increasingly being adopted by other member states, including France and Spain. I shall visit Brussels next month to urge the Commission to redouble its efforts to remove unnecessary directives, and to make sure that where new directives are proposed, they fully take account of the needs of small businesses, which are most likely to create the jobs we need in Europe.
Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
T5. More than a third of winning bidders in the regional growth fund’s first round have now withdrawn, while others have waited about two years to receive any money at all. Is this all part of the Government’s long-term economic plan?
Michael Fallon
It certainly is not. There are many reasons why some RGF bidders withdraw—because they do not get the planning permission they were anticipating, their main board does not give final approval for the plant, or they are not prepared to put in private sector money alongside the regional growth fund grant. Any money that is not used is of course put into future rounds of the fund. It is important that we carry out the necessary due diligence and check before taxpayer money is handed over.
Miss Anne McIntosh (Thirsk and Malton) (Con)
The Business Secretary gave us the welcome news that the local growth fund will come on stream next year. Infrastructure is the key to allowing local businesses to develop. Will there be enough money in the local growth fund to improve and upgrade the A64 along its whole route from York through Malton to Scarborough?
Michael Fallon
I am afraid that my hon. Friend will have to be patient for a few weeks longer before we announce the local growth deal for the local enterprise partnership covering her constituency, but I am aware that that is one of the projects that the local enterprise partnership wants to prioritise.
Fiona O’Donnell (East Lothian) (Lab)
T6. When the Prime Minister returned from the G7, he painted a very positive picture of progress in establishing public registers of beneficial ownership in the overseas territories and Crown dependencies, but the real picture is that only half of them have started or concluded their consultations. This is an opportunity for the Secretary of State to show off his leadership skills, so what work is he doing with the Foreign and Commonwealth Office to make some real progress on this issue?
New Businesses: Loans
Michael Fallon Excerpts(9 years, 10 months ago)
Ministerial CorrectionsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Toby Perkins
To ask the Secretary of State for Business, Innovation and Skills how many Start Up Loans applications have been supported by each approved provider of Start Up Loans mentoring services in each region in which the new company was based or planned to be based.
[Official Report, 16 June 2014, Vol. 582, c. 425W.]
Letter of correction from Matthew Hancock:
An error has been identified in the written answer given to the hon. Member for Chesterfield (Toby Perkins) on 16 June 2014.
The full answer given was as follows:
Michael Fallon
All loan recipients in all regions receiving a start-up loan are offered mentoring, although take up of support services is not a mandatory condition of making the facility available. The number of loans made in each region will be placed in the Libraries of the House.
The correct answer should have been:
Matthew Hancock
All loan recipients in all regions receiving a start-up loan are offered mentoring, although take up of support services is not a mandatory condition of making the facility available. The number of loans made in each region will be placed in the Libraries of the House.
Oral Answers to Questions
Michael Fallon Excerpts(10 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
4. What recent assessment he has made of the performance of UK Trade & Investment in supporting exports.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The most up-to-date independently audited figures show that in the 12 months to September 2013, UKTI supported nearly 35,000 businesses. The value of additional sales attributed to UKTI support over that period was more than £50 billion. UKTI is on track to meet its target to assist 40,000 businesses in 2013-14.
Daniel Kawczynski
In export week, I welcome that news, but what concrete steps are being taken by UKTI to reform its structure, personnel and strategy in order to ensure that we meet the Government’s £1 trillion target for exports?
Michael Fallon
My hon. Friend will be aware, because I know he takes a strong interest in this area, of the reforms to UKTI, which is now working closely with British businesses. This week, I attended the world’s leading trade and industrial technology fair in Hanover and saw UKTI working with the Birmingham chamber of commerce to provide support for 40 UK companies. It is estimated that from that fair alone some £5 million-worth of orders are in the pipeline.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
In February, UK exports actually fell. Given the fact that last year only a fifth of the total amount of money available for financing exports was actually used, what more can the Minister do to increase the uptake of UK export finance in order to boost our exports?
Michael Fallon
The hon. Gentleman makes an important point. There are schemes to assist companies with their export finance, but only large companies have taken advantage of them in the past. We need to do more to market those schemes. I do not think it is fair to take one month’s particular trade figures. We are increasing our trade, particularly with the emerging economies of Brazil, Russia, India and China.
Derek Twigg (Halton) (Lab)
The fact is, though, that exports are at their worst and lowest level since 2010. It is interesting that the chief economist of the British Chambers of Commerce has said:
“We need to match resources committed by our major competitors if we are to compete on a level-playing field when exporting overseas.”
What is the Minister doing specifically to ensure a level playing field for the chemical industry?
Michael Fallon
The trade deficit actually narrowed in 2013, so I repeat that I do not think it is right to take just the figures from February. We have specifically been helping the chemical sector recently. The energy package announced in the Budget will make a significant difference in freezing the carbon price floor. We are giving the chemical industry more help by exempting it from the renewables obligation and the feed-in tariffs. The energy taxes are being cut, which will significantly help both the chemical and the steel industry.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
6. What steps he is taking to ensure that universities remain financially sustainable in the long term.
Mr Robin Walker (Worcester) (Con)
8. What steps he is taking to promote trade opportunities for UK business in high-growth markets.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
UK Trade & Investment’s strategy confirms its continued focus on China, India and other high-growth markets, including some in Africa and central America. UKTI has identified more than 60 high-value opportunities in those markets, and with the help of our trade envoys, it promotes those opportunities to business. The £4 million announced by the Chancellor to support mid-sized businesses will enable UKTI to introduce such companies to those opportunities in high-growth markets.
Mr Walker
In export week, will the Minister congratulate Worcester firm Waste Spectrum, which is exactly one of those mid-sized companies that has recently achieved its first sale to China and will be dispatching one of its specially designed incinerators, built in Worcester, to that high-growth market at the end of this month?
Michael Fallon
I congratulate Waste Spectrum and the Worcester ambassadors, and I thank my hon. Friend for his work to promote trade with China. I know he visited China with the trade mission and was involved with an inward delegation from China, and understand that he is planning to visit China again. We need to thank him for his work in promoting links with that particular country.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Yesterday I held a meeting with a range of British businesses on their experience of support for trade in India. They did not have a good story to tell about the signposting and advice of UK Trade & Investment and other agencies. Is the Minister concerned about UKTI’s budget plans and the support that it provides if the experience of British businesses is not positive?
Michael Fallon
I am sorry to hear that. If the hon. Lady lets me have the details, I will certainly ensure that that is followed up with UKTI. We have allocated a bigger budget to UKTI and it has sharpened its focus. If there are improvements that we can make to the service that UKTI offers, I would be happy to consider them.
Philip Davies (Shipley) (Con)
Does the Minister agree that our future prosperity as a country depends on trading with China, India, south America and emerging economies in Africa—that is where all the future growth in the world economy will be—rather than being part of a backward-looking, inward-facing protection racket called the European Union?
Michael Fallon
I do not wholly agree with my hon. Friend. There are high-growth opportunities the world over, but the single market to which our businesses have access through our membership of the European Union is still an important part of our trading relationships.
Jim Shannon (Strangford) (DUP)
It may not be a high-growth market, but we had a reception here last week that introduced the fishing, oil and construction opportunities in the Falkland Islands. Has the Minister had an opportunity to discuss those matters with the Falkland Islands to develop those areas and give job opportunities to people from the United Kingdom of Great Britain and Northern Ireland?
Michael Fallon
In my capacity as Minister responsible for oil and gas, I am aware of the opportunities for developing the oil and gas fields off the Falklands. The hon. Gentleman will know that a considerable amount of initial exploration is taking place in the waters just to the north of the Falkland Islands, and of course we stand ready to help the Falkland Islands if that exploration can be turned into significant production.
Rehman Chishti (Gillingham and Rainham) (Con)
9. What recent steps he is taking to support women in business and encourage more women to enter business.
Jessica Morden (Newport East) (Lab)
13. What assessment he has made of the value for money for the public purse of the recent sale of shares in Royal Mail.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The National Audit Office’s report on the Royal Mail share sale published last week confirms that we achieved our key objective of achieving the sale and allowing Royal Mail access to the private capital it needs to invest and thrive. It was a successful transaction, raising £2 billion for the Exchequer, and has reduced the risks to the taxpayer of having to provide future financial support to the universal six-day-a-week service.
Karl Turner
The Secretary of State recently described me as “tribal” for my opposition to the fire sale of the Royal Mail. What does the Minister say about Peter Davies of Lansdowne Partners, the Chancellor’s best man and best pal, who is set to rake in millions from this dodgy deal? Will he say how many of the 12 lucky immediate winners are Tory party donors?
Michael Fallon
More than half the shares allocated to priority investors are still held by those investors, and six of them remain among Royal Mail’s largest shareholders.
Jessica Morden
Most people listening to the Minister’s response will think that it was particularly lame, to put it mildly. Can he justify the fact that consumers and businesses have faced hikes of up to 30% in stamp prices, while hundreds of millions of pounds have been squandered because of the Secretary of State’s disastrous decision at a time when families are really struggling?
Michael Fallon
Nobody has lost anything. Britain has gained a top-100 company in which 10% of the shares are owned by the staff themselves. Nearly three quarters of a million individual investors also have shares in Royal Mail. We achieved our objective of realising nearly £2 billion of receipts for the Exchequer, ensuring that Royal Mail has been put on a sound commercial footing.
Ian Murray (Edinburgh South) (Lab)
The Minister can spin this as much as he likes, but he shamefully lost the taxpayer £750 million from the sale of Royal Mail. At that time, the Business Secretary dismissed the loss, saying:
“We wanted to make sure that the company started its new life with a core of high-quality investors who would be there in good times and bad”.
Given that the core long-term investors that the Business Secretary championed have used the good times to sell the majority of their shares at huge profit, is it not right that the Government tell us who those priority investors are, so that the taxpayers know where their lost millions went?
Michael Fallon
Nobody has lost anything from the sale of Royal Mail. More than half the shares allocated to priority investors remain with those investors, and the share price has fluctuated wildly. I do not think the hon. Gentleman has been in touch with his broker recently; otherwise he would know that the share price closed last night at 17% down on its post-float peak.
Adam Afriyie (Windsor) (Con)
14. What recent steps he has taken to encourage young people to get involved in business.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
T4. Last week, the Prime Minister said on the BBC that he would do everything he could to keep the pits at Kellingley and Thoresby open. This morning, the Minister of State issued a written statement confirming that the Government were facilitating a “managed closure”. Given that people will begin to lose their jobs on 23 May, there is now a very short period in which it is realistically possible to secure alternative investment to keep the pits open. Towards the end of last week, a private operator suggested that it might be interested. Has the Minister of State, or his officials, had any discussions with it about whether it is possible to find a way of securing a commercial future for those pits and those communities?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
In my ministerial statement, copies of which are available in the Vote Office and the Library, I confirmed that we were prepared in principle to contribute a £10 million loan—alongside contributions from other private sector investors—to support a managed closure of the two collieries, which would avoid the significant losses and liabilities that would have materialised in the event of the immediate and uncontrolled insolvency of UK Coal. That does not exclude any further private sector interest, and I have been meeting others who have expressed an interest, as has UK Coal.
Philip Davies (Shipley) (Con)
T8. Given that sales increased by 2.8% in London and by 6.2% outside London during the Olympic games as a result of the relaxation of the Sunday trading laws, will the Minister consider a further relaxation—perhaps during the World cup, the Commonwealth games and the run-up to Christmas—or, better still, abolish the restrictions altogether, in order to help bricks-and-mortar retailers to compete with those that trade online?
John Robertson (Glasgow North West) (Lab)
T7. The Secretary of State said earlier that investment in businesses would go ahead next year, but today we have heard about the closure of coal mines. Will the Minister explain why, according to figures from Bloomberg New Energy, investment in clean energy in the United Kingdom is due to hit a five-year low this year? What is happening to that investment?
Michael Fallon
There has been a wave of investment in energy, not least the commitment last week by Siemens to invest £300 million in two plants on the Humber that will create 1,000 new jobs. We have seen a series of projects come forward for assistance under our renewables regime, and we will be running a capacity market later this year to secure more energy investment in four years’ time.
Duncan Hames (Chippenham) (LD)
The Budget invited universities and others to bid to develop the new Alan Turing institute for big data, an invitation enthusiastically embraced in Wiltshire and Swindon’s economic plan. How can we now work with the Minister to make this bright idea a reality?
Oral Answers to Questions
Michael Fallon Excerpts(10 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Karen Lumley (Redditch) (Con)
1. What steps he is taking to raise awareness of export support services among small and medium-sized businesses.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
UK Trade & Investment has an extensive programme of awareness-raising activity that is directed at small and medium-sized businesses. That includes a national marketing campaign, “Exporting is GREAT”. More than 10 million people are expected to see the campaign and it should lead to about 3,000 additional businesses working with UKTI.
Karen Lumley
Will my right hon. Friend join me in congratulating Clifford Springs in Redditch, which has a great record in exporting springs, for which Redditch is renowned? Will he tell Clifford Springs and other companies what more they can expect from UKTI?
Michael Fallon
I, too, congratulate Clifford Springs on its export success, particularly to the United States. UKTI has a team of 39 international trade advisers based in the west midlands. They have supported more than 1,400 companies across the region, including many companies in my hon. Friend’s constituency. They also support more experienced companies and companies of all sizes with advice, information and practical support to build their exports.
Richard Burden (Birmingham, Northfield) (Lab)
The Minister will know that one sector in which exports are great for Britain is the motorsport sector. That is to be applauded. However, does he share my concern that some of the exporting that appears to be going on is the exporting of jobs? That is what is happening at Dunlop Motorsport in Birmingham. It seems to be exporting some jobs abroad, when it has been offered alternative sites in Birmingham and when his Department has been pressing it to stay in Birmingham. Will he redouble his efforts to persuade Dunlop Motorsport to stay in Birmingham, where it should be?
Michael Fallon
My right hon. Friend the Secretary of State has met the company and it was the subject of a debate in the House recently. We will continue to do what we can. However, motorsport is an important and large business sector. I attended the Autosport exhibition in Birmingham recently, as the hon. Gentleman probably did. More than 45,000 people work in the industry across the country and it has a total value of more than £8 billion. We must do everything that we can to ensure that the sector continues to grow.
Mr Mark Prisk (Hertford and Stortford) (Con)
Exporting in the modern economy requires sustained financial support, yet the law in this country restricts to individual transactions the financial support for exports. I urge the Government to change the law so that we can have the support that is needed for exporters, small, medium and large.
Michael Fallon
I will certainly look at the point that my hon. Friend raises. I pay tribute to his efforts at the Department over two and a half years to back companies of all sizes in their export drive.
Robert Flello (Stoke-on-Trent South) (Lab)
2. What recent assessment he has made of the availability of finance and the level of lending by banks to small businesses.
Bob Blackman (Harrow East) (Con)
3. What steps he is taking to reduce the amount of EU regulation which affects businesses.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The Government continue to press the European Union to reduce burdens on business. We are focused on delivering the business taskforce’s report, their 30 specific recommendations for reforming EU law, and the “compete” principles that should apply to all new EU legislation. We have already achieved good progress on seven of the 30 recommendations, and we are seeing growing recognition of the “compete” principles among major European business organisations and in the European Parliament.
Bob Blackman
I thank my right hon. Friend for that answer. Businesses in my constituency complain not only about EU regulations, but about the fact that other countries do not play by the same regulations, and that when our civil servants implement regulations, they gold-plate them. What action is my right hon. Friend taking to remove that gold-plating and ensure that we do the minimum possible to abide by the rules?
Michael Fallon
I think there was too much gold-plating in the past, and we have reviewed all 132 directives implemented in the past two and a half years since we tightened the rules on transposition. Of those 132, there is only one example of a directive being gold-plated. That is the consumer rights directive where we took the decision to better protect consumer interests in the use of premium lines.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Do we have to use this language from The Sun about gold-plating? There is good regulation and bad regulation, and we should be in favour of the good and oppose the bad. As the Minister’s Department will know, this morning there is a Financial Conduct Authority report on crowdfunding. Crowdfunding is one way that small businesses can get finance, and they have been let down by the big banks in this country. This regulation comes from this Government. Is EU regulation able to help us where the Government cannot?
Michael Fallon
The business bank is working precisely on supporting crowdfunding with schemes of that kind. I agree that there is good regulation to protect consumers and health and safety, but there is also far too much unnecessary legislation that has been imposed on us by the European Union. The previous Government did absolutely nothing about it, but we are doing something.
Karl Turner (Kingston upon Hull East) (Lab)
4. How many firms have been prosecuted for non-payment of the national minimum wage since May 2010.
Mark Garnier (Wyre Forest) (Con)
12. What steps he is taking to support businesses affected by recent floods.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
We have funded a £10 million business support scheme which is available to businesses that have been flooded or significantly impacted by the floods. The grant can help businesses with clean-up costs, drying equipment, temporary accommodation and marketing. This is part of a wider package that includes 100% business rate relief for three months and new repair and renewal grants.
Mark Garnier
I am grateful to my right hon. Friend for that answer and for all the Government are doing to help businesses affected by the floods. In my constituency, 29 businesses, mainly in the town of Stourport-on-Severn, have been directly flooded and a number of others have been indirectly affected. So far, Wyre Forest has not been included in the first tranche of the direct support grant. Can my right hon. Friend reassure my constituents that those businesses that have been affected will be supported when the second tranche is announced next week?
Michael Fallon
Yes. With the first round of funding—some £5 million—the aim was to get the money out and allocated to local authorities as quickly as possible. We are in touch with other local authorities, including Wyre Forest district council, and I hope the second round of funding will be allocated very shortly.
Diana Johnson (Kingston upon Hull North) (Lab)
Can the Minister confirm that the business support money that is available is capped at £5,000? That might meet the needs of smaller businesses, but for medium-sized or larger businesses that is quite a small amount considering many of them lost very expensive equipment.
Michael Fallon
The cap is £2,500 for the business support scheme, although there are other schemes available and the hon. Lady will be aware that I wrote to her on 25 February pointing out that Hull has been allocated some £230,000, the fifth largest allocation anywhere in the country.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
20. Following the floods that took out Dawlish railway line, last week I visited a number of my businesses at my Plymouth railway station, including taxi drivers, Spar and some newsagents, who have noticed a 40% drop in their footfall. What might the Government be able to do to help those people?
Michael Fallon
We have announced a £2 million tourism support package, from which Plymouth will benefit. Local workshops and drop-in clinics will deliver practical help on the ground for tourism businesses, alongside a focused marketing campaign to boost trade for Easter and the early summer. VisitBritain is providing a promotional push abroad to encourage visitors from overseas, and I can tell my hon. Friend that it is working in partnership with Brittany Ferries on a £10 million campaign to promote the south-west more generally.
Miss Anne McIntosh (Thirsk and Malton) (Con)
Does my right hon. Friend share my concern that small businesses will be excluded from the Flood Re insurance scheme, and that that will have an impact on their future reinsurance and excess premiums?
Michael Fallon
The Flood Re scheme is there to help some of the hardest-to-insure areas, but most business insurance is already priced to risk, unlike household insurance, in which cross-subsidies apply. However, I will certainly look again at the point my hon. Friend has raised.
Mr Mark Harper (Forest of Dean) (Con)
13. What recent assessment he has made of the competitiveness of the retail grocery market.
Richard Graham (Gloucester) (Con)
22. What steps he is taking to raise awareness of export support services among small and medium-sized businesses.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
I refer my hon. Friend to the answer I gave some moments ago.
Richard Graham
On my last trade envoy mission to Indonesia, I arranged for a film to be made of about a dozen SMEs that were with me before, during and after the mission in order to show it at later seminars across the country to convince small businesses that they can export successfully to far-away growth markets. Does my right hon. Friend agree that such low-cost films made by different trade envoys in different markets could be an attractive tool to encourage SMEs to export?
Mr Speaker
I have just learned something new. I did not know that the hon. Gentleman was a trade envoy, but I do now and I am pleased to learn it.
Michael Fallon
I agree that films can be a useful way of helping businesses to understand the benefits of exporting. My hon. Friend will be interested to hear that UKTI is producing a series of “Exporting is GREAT” videos based on companies that feature in its campaign. There are currently four videos for Cundall, Angloco, Serious Games and for Lye Cross Farm, which exports cheese to France.
Mark Menzies (Fylde) (Con)
T4. What steps is the Department taking to support small and medium-sized businesses in Lancashire that are keen to export their goods and services?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
We are committed to helping Lancashire companies to start exporting or to expand in new markets. Between April and December 2013, UKTI helped nearly 600 businesses across Lancashire and I was pleased to see my hon. Friend supporting those efforts by partnering with UKTI in delivering a successful export event for local businesses at the BAE site in his constituency last week.
Susan Elan Jones (Clwyd South) (Lab)
T3. I know that many of us were waiting with a great deal of interest for the Financial Conduct Authority’s new rules on payday lending, but does the Minister share my disappointment that it did not come up with a much tougher action plan on advertising?
Andrew Stephenson (Pendle) (Con)
T5. Pendle businesses were delighted when the Government published the draft assisted area status map back in December, proposing to include part of Pendle for the first time. The current map, drawn up under the previous Government in 2007, did not include a single part of Pendle, yet the new map will include about 50% of the borough. Will my right hon. Friend update the House on the progress in bringing the new map into force?
Michael Fallon
I am glad that my hon. Friend is pleased with the draft map. The Government are considering responses made in stage two of the assisted areas consultation to the draft map and the final map for 2014 to 2020 is due to come into effect on 1 July this year.
Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)
T7. A major hotel chain in my constituency employs a conveyor belt of young people. They are all on zero-hours contracts, tips are pooled and loosely accounted for and if workers have the audacity to question anything they are rewarded —punished—with fewer shifts. When will the Secretary of State stop consulting and start doing something about exploitation through zero-hours contracts?
Mr Robin Walker (Worcester) (Con)
I am very pleased with the Government’s rapid response in providing support for businesses that were directly affected by the floods, but evidence is emerging in Worcester of substantial indirect effects from transport disruptions, particularly to small businesses. I understand that Worcester received around £57,000 of funding in the first tranche of the floods fund. Can the Minister confirm that as more evidence emerges, there may be more money to support local SMEs?
Michael Fallon
I can confirm that a second tranche of funding will be made available under the business support scheme, and my Department is talking to all local authorities where businesses have been affected. Where they have been significantly affected, of course we want to help.
Oral Answers to Questions
Michael Fallon Excerpts(10 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Stuart Andrew (Pudsey) (Con)
3. What recent assessment he has made of the level of UK exports.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The latest figures from the Office for National Statistics, released on 9 January, show that UK exports totalled more than £494 billion in 2012, the highest level on record. Exports in the first 11 months of 2013 were in excess of £40 billion a month.
Stuart Andrew
I am grateful for that answer. It has been very encouraging to hear a number of businesses in my constituency, including the Hainsworth mill in Stanningley, reporting increased exports in recent months. Will my right hon. Friend update the House on the performance of UK exports in some of the newer growth markets?
Michael Fallon
In spite of tough trading conditions, British exports of goods have increased under this Government—to China by 98%, India by 56%, Russia by 110% and Brazil by 45%.
Mark Tami (Alyn and Deeside) (Lab)
The Minister will be aware of the importance of Airbus to UK exports. Is he as concerned as I am about the billions of pounds of subsidy to Boeing that has been announced by Washington state and sanctioned by the US Government?
Michael Fallon
These are issues I discuss with Airbus from time to time. The hon. Gentleman will be aware of action under the World Trade Organisation on two cases, one involving subsidies to Boeing and the other involving alleged subsidies to Airbus. I hope that some of those issues can be resolved in discussions on the transatlantic trade partnership.
Mr Mark Prisk (Hertford and Stortford) (Con)
In Germany, the Mittelstand leads the way in exports. What steps are the Government taking to target our mid-sized businesses, particularly for emerging markets?
Michael Fallon
I recognise the enormous amount of work my hon. Friend did when he served in the Department before me. We have a target of assisting some 1,500 mid- size businesses by 2015. My noble Friend Lord Livingston yesterday announced a major enhancement of the programme that will see an expanded regional network of advisers in UK Trade & Investment, with some 28 advisers in place across all nine English regions, specifically targeted to drive up the number of mid-sized businesses that might be deciding to export for the first time or to increase their performance.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
Given the recent comments from Nissan and other manufacturers about the importance of Britain’s staying in the EU, does the Minister agree that it is vital that Britain stay in the European Union and that the current uncertainty about Britain’s future membership that we see in some quarters is damaging to the future of British job prospects?
Michael Fallon
What is important for car manufacturers from overseas, such as Nissan, and for all foreign investors in Britain is that the single market is strengthened and available to them. One of the purposes of our reform programme in Europe is to ensure that the member states that do not wish to become enmeshed in the eurozone can still enjoy the full protection and opportunities of the single market.
Mr David Heath (Somerton and Frome) (LD)
May I warmly congratulate UK Trade & Investment on its work with the Department for Environment, Food and Rural Affairs promoting the food and drink sector and also the GREAT Britain campaign, which is, I think, genuinely great? Will my right hon. Friend set aside a small promotional budget to support our presence at international food fairs? We are outgunned by other countries, and a pavilion that showed off the best of British produce would bring dividends.
Michael Fallon
I shall certainly see what more we can do in that regard. I know that food and drink exports will be one of the themes of our commitment to Expo in Milan later this year and I shall be discussing our pavilion in Milan this evening and tomorrow.
Mr Iain Wright (Hartlepool) (Lab)
I detect a real note of complacency in the Minister’s remarks. Let us not crack open the imported champagne just yet. The Secretary of State’s trade and investment White Paper of 2011 stated:
“The UK now needs to rebalance its economy…toward increased exports and investment.”
Yet the value of exports fell in the last quarter and net trade acted as a drag on GDP growth for much of 2013. Given that the trade gap remains persistently high and is growing, manufacturing as a share of our economy has fallen under this Government, and investment has continued to flatline, will the Minister now concede that an export-led recovery has not materialised?
Michael Fallon
I am disappointed that the hon. Gentleman should talk down British exporting and British manufacturing at precisely the time we see a renaissance not only in our automotive industry but in our aerospace and other industries. Of course trading conditions are tough, not least with problems in the eurozone and elsewhere, but exports are up and we continue to help drive increased export performance through supporting small and medium-sized enterprises and mid-sized businesses.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
4. What assessment he has made of the value for money achieved for the public purse through the recent sale of shares in Royal Mail.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
With permission, Mr Speaker, I will answer this question together with Question 5.
Mr Speaker
Unfortunately not. It is perfectly reasonable for the Minister of State to seek to do so, but the attempted grouping falls because I fear that the hon. Member for Derby North (Chris Williamson) is not present in the Chamber.
Michael Fallon
I was hoping there would be some interest in this question.
We believe that value for money should be assessed over the long term and should consider not merely the proceeds from the initial sale but the value of the taxpayer’s retained stake in Royal Mail and the reduced risk to the taxpayer and the six-day-a-week universal service of a stable company with access now to private capital.
Gregg McClymont
Given the botched and imprudent sale of the first tranche of Royal Mail shares by this Government at the expense of taxpayers, the public will be concerned about the emerging reports that the Government intend to sell off the remaining family silver before the next election. Will the Minister confirm whether those reports are accurate?
Michael Fallon
I can confirm, first, that the sale of Royal Mail was a success. Unlike the hon. Gentleman, I am delighted that the shares have risen in value, reflecting Royal Mail’s interim trading results and the long-overdue agreement with the union. Any decision on a sale of the remaining stake is still to be taken.
Mr Nigel Evans (Ribble Valley) (Ind)
One of the hidden values for money is the fact that of the 150,000 eligible hard-working postmen and women who could take up their free allocation, only 368 said no. That means that as the company goes from strength to strength, those who directly work for Royal Mail will now financially benefit from that. Is not that a very good thing?
Michael Fallon
Yes. I would have thought that Labour Members would welcome this extension of employee share ownership. I am delighted that 99% of Royal Mail’s employees took up the offer and now have a stake in the success of that company as it moves forward.
Ian Murray (Edinburgh South) (Lab)
As my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont) said, the fire sale of Royal Mail has cost the taxpayer in excess of £750 million, but it has not taken it long to enjoy its new privatised status. Reports in the media suggest that the board of Royal Mail is about to propose a significant pay increase for the chief executive to bring her in line with those in other FTSE 100 companies. The Business Secretary says that he will use the Government’s remaining stake as the largest stakeholder to veto the proposals. Does the Minister agree with the Secretary of State, his boss, or is this just froth?
Michael Fallon
If this were a fire sale, it would certainly, as my hon. Friend the Member for Gainsborough (Sir Edward Leigh) has said, be one of the longest fire sales in history, given that Governments have been trying to sell Royal Mail for over 20 years. I think we should salute Moya Greene’s achievement in transforming a loss-making public corporation into one of Britain’s top 100 companies and congratulate her, as one of all too few female chief executives, on her award as business person of the year. We have yet to receive any proposal from the remuneration committee.
Neil Carmichael (Stroud) (Con)
When I last visited Stroud sorting office just before Christmas, I noticed that the much-needed modernisation programme was being started. Does the Minister agree that that has been made possible by the sale of shares and that it represents a Government success?
Michael Fallon
Yes. The purpose of the sale was to enable Royal Mail to have access to private capital so that it would not be dependent on the taxpayer for ensuring the successful delivery of the six-day-a-week universal service on which we and all our constituents rely.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
6. What steps he is taking to support women in business.
Mr Philip Hollobone (Kettering) (Con)
For the 150,000 posties who are now shareholders in Royal Mail, will the Secretary of State or the Post Office Minister tell us what the average value of their individual shareholdings was at flotation and what their average value is now?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
It has undoubtedly increased, and we should all welcome that, particularly the commitment of Royal Mail employees to the future success of the company. Perhaps I shall write to my hon. Friend with the exact information he requests.
Oral Answers to Questions
Michael Fallon Excerpts(10 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ann Coffey (Stockport) (Lab)
1. What recent meetings he has had with representatives of the retail sector.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
I regularly meet representatives of the retail sector. I attend the retail policy forum, which meets three times a year, and I recently spoke at the Association of Convenience Stores’ heart of the community conference. As part of small business Saturday, I will visit independent shops in Westerham this weekend and I encourage all colleagues to support this hugely important campaign.
Ann Coffey
The rise in e-commerce and online sales is changing our shopping habits and impacting on our high streets. What more can the Minister do to encourage co-operation between big retailers, independent retailers and councils to take advantage of the opportunities offered by developing technology to transform our high streets into exciting community spaces for the 21st century?
Michael Fallon
I agree with the hon. Lady about the huge opportunity here. We are keen to help small businesses in particular to trade online. With the help of my Department, Go ON UK is piloting a programme to help to provide businesses with the skills to transact online, including using mobile technologies to exploit the increasing use of smartphones in e-commerce. That will roll out nationally next spring. The Technology Strategy Board carried out a successful digital high street pilot last year in Hereford and it is currently exploring how to build on that.
Mr James Gray (North Wiltshire) (Con)
I, too, will be out and about in Calne, Royal Wotton Bassett and Malmesbury on small business Saturday, supporting our small retailers. Does the Minister agree that one of the biggest burdens I will hear about as I wander around will be the overwhelming burden of business rates on small businesses? What action can he take now to lessen that appalling burden?
Michael Fallon
My hon. Friend will know that we have doubled small business rate relief and have already extended it until 2014. On our plans after that, I must ask him to be patient a little longer.
Stephen Mosley (City of Chester) (Con)
Chester has been a fantastic shopping centre for centuries, but it faces increased competition from online shopping and out-of-town shopping centres. Does my right hon. Friend agree that these days we have to make shopping an entertainment experience, with cafés, bars and on-street entertainment to drag people back on to the high street?
Michael Fallon
Yes, I do agree. As the hon. Member for Stockport (Ann Coffey) put it, we have to make high streets community spaces again that are not simply for transactional shopping. There are a number of ways in which high streets can respond to the challenge of e-commerce and the Government are here to help.
Mr Henry Bellingham (North West Norfolk) (Con)
2. If he will meet representatives of the small business sector to discuss the removal of unnecessary regulation.
Mr Philip Hollobone (Kettering) (Con)
5. How many regulations affecting small businesses the Government have (a) introduced and (b) removed since May 2010.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The statement of new regulation, which we publish every six months, shows that since January 2011 we have introduced 57 regulatory measures, 135 deregulatory measures and 108 measures that have no net cost to business, many of which are deregulatory. That is saving British businesses nearly £1 billion a year. Small businesses, which account for 99% of all businesses, benefit in particular from the one in, one out rule—it is now the one in, two out rule—that drives this deregulation.
Mr Hollobone
I congratulate the Minister on his efforts to secure an exemption for micro-businesses from specific EU regulations. That will help small businesses in Kettering and across the country. What further efforts does he intend to make to secure more exemptions from harsh EU rules?
Michael Fallon
The EU business taskforce, which I chair, identified 30 regulations that should be repealed. We continue to press the Commission to lighten the rules for small businesses and to exempt the very smallest businesses altogether.
Graeme Morrice (Livingston) (Lab)
6. What recent estimate he has made of the number of apprentices being paid below the apprenticeship minimum wage.
Mrs Mary Glindon (North Tyneside) (Lab)
18. If he will bring forward legislative proposals for regulations under the EU machinery directive to protect disabled people.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The EU machinery directive was transposed into UK legislation by the Supply of Machinery (Safety) Regulations 2008. These require products placed on the market to be safe when used for their intended use and are applicable to all relevant people. When used by persons with disabilities, the products must be just as safe for them as they are for able-bodied people.
Mrs Glindon
My disabled constituent Mr Harding, about whom I wrote to the Minister, has experienced recurring problems with his lift appliance, narrowly escaping injury on a number of occasions. Will the Minister say how Mr Harding and other disabled people can ever feel confident about using such equipment if it is not subject to specific legislation and if they have no recourse legally if an accident occurred?
Michael Fallon
I am sorry that Mr Terry Harding has had these difficulties over a long period with a number of products, but I am pleased that he has now been supplied with a new product—thanks, I think, to the intervention of the trading standards officers of North Tyneside council. I would be happy to discuss with the hon. Lady what further steps she thinks might be necessary and to look at the legislation again with her.
Simon Hughes (Bermondsey and Old Southwark) (LD)
19. What steps he is taking to encourage exports.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
T2. On Monday the Government announced substantial changes in the ECO energy efficiency scheme, including significant scaling back of the component that insulates solid walls. Most of the large-scale local authority and social landlord energy efficiency schemes depend on that component, and there will obviously be a correspondingly negative impact on the insulation industry. What discussions is the Department having with the industry about the likely number of job losses, and what are they doing to mitigate it?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
I do not recognise the impact that the hon. Gentleman suggests. The energy company obligation scheme is being extended over a further two years, until 2015, and it is being focused better on those households that need it most.
Greg Mulholland (Leeds North West) (LD)
Two hundred and three MPs across this House now back the solution proposed by the Select Committee on Business, Innovation and Skills to pubco overcharging: the market rent only option. Will the Department do the right thing this time, back the Select Committee, deal with this crony capitalism and listen to the voice of small business? Both the Federation of Small Businesses and the Forum of Private Business support our approach.
Oral Answers to Questions
Michael Fallon Excerpts(10 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
Our overarching objective is to put Royal Mail in a position to be able to deliver the universal service on a long-term and sustainable basis. When considering value for money, we will assess the sale proceeds together with the long-term value of the taxpayers’ retained stake in the business and the reduced risk to the taxpayer of a stable company with access to private sources of capital.
Clive Efford
The shares were sold at £3.30 each and this morning they are selling at £5.32. Does the Minister agree that the taxpayer got a raw deal in the share sale, and does he accept full responsibility?
Michael Fallon
It is not unusual to see some share price volatility in the immediate aftermath of a sale. Let us be clear: this sale was popular, oversubscribed and successful. When the Labour Government tried to sell Royal Mail, they failed.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
Will the Minister tell us how much money was paid to Lazard for so comprehensively undervaluing Royal Mail?
Michael Fallon
The fees paid to the Government’s advisers will be disclosed in the normal way to the National Audit Office, which is of course looking at this sale as they looked at the Northern Rock sale, but they compare favourably to the fees paid to advisers by the Labour Government in the sale of QinetiQ 10 years ago, when 10 senior managers were allowed to walk away with £107 million and no shares were sold to the public.
Ian Murray (Edinburgh South) (Lab)
The Minister claimed that value for money for the taxpayer was central to the Government’s fire sale strategy for the national institution that is Royal Mail. Given that many investment banks valued the company at £1.7 billion more than the sale price, that the sale was oversubscribed 20 times over and that the share price has steadily risen to more than 60% of its initial value, why did the Minister reject raising the price range when he knew the offer was oversubscribed? Does the Minister agree with the Secretary of State that the loss of more than £750 million to the taxpayer is froth and ill-informed?
Michael Fallon
It is far too early to judge the long-term performance of the Royal Mail share price. With any initial public offering there will be volatility in the price and it is too early to make a judgment. As far as the banks are concerned, a whole number of banks were consulted on the value of Royal Mail. The value established was, I think, around the mid-point of the range of the advice we received.
Peter Aldous (Waveney) (Con)
15. What steps his Department is taking to promote regional growth.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The Government believe that local businesses and civic leaders are best placed to understand what drives growth in their area. Resources available to local enterprise partnerships have been increased to at least £20 billion until 2020-21, and LEPs will be able to access funding and powers to support growth through local growth deals. Furthermore, the regional growth fund is projected to deliver more than 500,000 private sector jobs, leveraging in more than £14 billion of private sector investment.
Peter Aldous
The Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Great Yarmouth (Brandon Lewis), and I, along with 12 other colleagues from Suffolk and Norfolk, wrote to the Minister earlier this week emphasising the advantages for promoting growth that assisted area status for Lowestoft and Great Yarmouth will bring to the two counties. Will my right hon. Friend give full consideration to the strong and compelling bid submitted by the New Anglia local enterprise partnership?
Michael Fallon
I certainly undertake to do that. I have seen my hon. Friend’s letter, signed by several colleagues, and I have also written this week to all Members setting out the benefits of assisted area status and explaining the process and timetable for revising the map for the period 2014-2020.
Caroline Lucas (Brighton, Pavilion) (Green)
16. What steps he is taking to promote provision of apprenticeships.
Julie Hilling (Bolton West) (Lab)
The Secretary of State has spoken proudly about the new businesses that have started up, but can he tell us how many businesses closed last year, and how many jobs were lost as a result of those closures?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
I shall be happy to write to the hon. Lady with the number of deregistrations, but overall there are more businesses being created than are being closed. We have, I think, 400,000 more new businesses than we started with two and half years ago.
Fiona Bruce (Congleton) (Con)
T8. What steps are the Government taking to address skills gaps, create jobs and increase productivity by improving the information given in schools about vocational job opportunities, particularly local ones?
Mr Mark Prisk (Hertford and Stortford) (Con)
In the past three years, the UK car industry has gone from strength to strength, but there is always more to do. Will the Secretary of State tell the House what further work is planned, in conjunction with the Automotive Council, particularly with regard to new engine and powertrain technologies?
Michael Fallon
Let me first pay tribute to my hon. Friend, who had responsibility for this industry in the Department for three years. The automotive strategy, published earlier this summer, included a focus on the new automotive investment organisation to attract more suppliers into the UK, work to tackle the skills base by recruiting nearly 2,000 additional graduates into engineering, and further work to strengthen the supply chain throughout the industry.
Paul Blomfield (Sheffield Central) (Lab)
The Secretary of State will know that there is serious concern among our universities about many of the provisions of the Immigration Bill and their impact on international student recruitment. What discussions has he had with universities on the issue and what representations has he made to the Home Office?
Miss Anne McIntosh (Thirsk and Malton) (Con)
I understand that in 2014-15 the local LEP is going to have a sizeable budget to distribute for infrastructure. Will the relevant Minister explain how we can access that budget and what the criteria will be?
Michael Fallon
Local enterprise partnerships have been invited to submit their growth plans not simply for the first year of devolved budgets, which is 2015-16, but for the expenditure of structural funds—both regional funds and social funds—from July next year for the next seven-year period. We will examine each of the local growth funds and work with individual LEPs on particular growth deals to suit each area.
Ian Swales (Redcar) (LD)
As the chemical industry is Britain’s leading exporter, I warmly welcome this week’s launch of the chemicals growth partnership. Will the partnership convene specially to discuss the issues presented by Grangemouth?
Michael Fallon
Despite the serious news about Grangemouth, the sector as a whole remains optimistic about, in particular, the potential for future growth. The launch this week focused on energy costs, innovation and supply-chain development, and the partnership has published an action plan, which I know my hon. Friend has seen.
Oral Answers to Questions
Michael Fallon Excerpts(10 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
3. What recent assessment he has made of the performance of the regional growth fund.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The regional growth fund is a success. Last week, I published our first annual monitoring report, which shows that job creation in rounds 1 and 2 is on track. With our accelerated timetable, we have now completed the contracting process with all but a handful of beneficiaries in rounds 1, 2 and 3. Last week, I also announced that in round 4, 102 selected bidders will have access to over £500 million. Overall, this Government have committed over £2.6 billion to areas that most need private sector-led growth and employment.
Eric Ollerenshaw
We have now had four rounds of the regional growth fund, and the north-west has done very well out of it, for which I am grateful to the Minister. Will he confirm that the Government will continue to use this as a mechanism to narrow that north-south divide, which of course grew so much wider under the previous Government?
Michael Fallon
I thank my hon. Friend for his important report on the north, and I congratulate him on his appointment as a small business ambassador. The spending review last month confirmed that there will be further rounds of the regional growth fund in 2015-16 and in 2016-17, totalling over £300 million in each case.
Alison McGovern (Wirral South) (Lab)
If the regional growth fund is to be at all successful, it must not only create jobs but improve the skills base in our country. What checks has the Minister put in place to make sure that this actually happens?
Michael Fallon
The regional growth fund makes grants not simply to projects and individual companies, but to programmes organised by local enterprise partnerships and other private sector organisations, many of which focus on improving the level of skills in these particular areas.
Mr Philip Hollobone (Kettering) (Con)
Would my right hon. Friend be kind enough to accept an invitation to visit the site of the proposed junction 10A on the A14 near Kettering, which has attracted the interest of the Department of Energy and Climate Change, the Department for Transport and the Department for Communities and Local Government? An investment of £30 million in the regional growth fund could trigger private sector investment of more than £1 billion.
Michael Fallon
Happily, I have not fully finalised my summer plans, so I shall add to them this visit to a motorway junction. [Laughter.] My hon. Friend makes a serious point: there is clearly a bottleneck that needs to be removed. I will see if I can accept my hon. Friend’s invitation.
Mark Menzies (Fylde) (Con)
4. What steps he is taking to encourage traineeships.
Chris Williamson (Derby North) (Lab)
12. What steps he is taking to protect the universal service obligation under plans for the privatisation of Royal Mail.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The Government’s overarching objective is to secure the future of the universal postal service. The minimum requirements of the universal service are enshrined in primary legislation, which means that the six-days-a-week, one-price-goes-anywhere service to every address in the United Kingdom can only be amended by Parliament. That protection will continue to apply following any sale of shares in Royal Mail.
Graeme Morrice
The Government’s Royal Mail privatisation has been opposed by a broad coalition, including employees of Royal Mail, the Countryside Alliance, the National Federation of SubPostmasters, and even the Conservative think-tank the Bow Group. Moreover, the results of a recent poll showed that the vast majority of the British public oppose it as well. Is it not time that the Secretary of State abandoned his plans for the fire sale of Royal Mail in the face of that overwhelming opposition?
Michael Fallon
Last week’s announcement confirmed our plans to allow this very successful British business access to private capital for the first time, and to deliver what Parliament agreed more than two years ago, namely that 10% of the company should be in the hands of the work force.
Chris Williamson
Despite those assurances, the public have seen that previous ideologically driven and badly executed privatisations have led to substandard services and price increases. The fact is that the polls show that the vast majority of the British public oppose this privatisation. Why is the Minister riding roughshod over the wishes of the British people?
Michael Fallon
Parliament has already decided that Royal Mail should have access to private capital. We are implementing that decision of Parliament, and the decision to put 10% of the shares in the hands of the employees. The level of service is protected under the Postal Services Act 2011, and any change in ownership does not affect control over the price of stamps or the future of the six-days-a-week service.
Andrew Bridgen (North West Leicestershire) (Con)
It is clear that there are none so deaf as those who do not want to hear. My right hon. Friend has stated on many occasions—but perhaps he will reiterate it for the benefit of the House—that, regardless of ownership, Royal Mail will remain the designated universal service provider.
Michael Fallon
Yes, and my hon. Friend need not take my word for that. It is in the statute. It is a duty of the regulator, Ofcom, to ensure that the service is protected, and that can only be changed by a vote in Parliament.
Andrew George (St Ives) (LD)
I am grateful for my right hon. Friend’s reassurances, but my constituents in the remoter reaches of west Cornwall, and indeed on the Isles of Scilly, want to be reassured about the delivery of not only first and second-class letters and postcards, but packages. They fear that the cost of those services will become prohibitive. What can be done to protect my constituents from exorbitant charges?
Michael Fallon
The best protection that I can offer my hon. Friend is to ensure that Royal Mail’s finances are put on a sustainable, long-term footing, and that it has access to the capital that it needs in order to innovate, compete and respond to changing technologies. Its parcels business is already growing rapidly, but it is in a competitive marketplace, and we need to free it so that it can operate like any other commercial company.
Mr Mike Weir (Angus) (SNP)
As the Minister will appreciate, a universal service depends not only on deliveries but on uplift points, and there are serious concerns about the post office network and in particular whether post office locals will all be able to provide the parcel service. If that comes to pass, what powers do Ofcom or the Minister have to intervene to make sure that service is available?
Michael Fallon
I am proud to be part of a Government who have put an end to the post office closure programme we saw in the last few years. That has been brought to an end, and the post office network is being put on to a better footing, but the regulator Ofcom has all the powers it needs to ensure that the universal, six-days-a-week, everywhere-in-the-UK service is fully protected in the future, irrespective of any change in ownership.
Richard Graham (Gloucester) (Con)
6. What progress he has made on a sale of shares in Royal Mail.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
On 10 July the Secretary of State laid a report in Parliament and made an oral statement setting out our decision to sell Royal Mail shares through an initial public offering in this financial year. Shares will be available to both institutional and retail investors, and 10% of the shares will be available free of charge to eligible employees so that they have a real stake in the business.
Richard Graham
As my right hon. Friend the Minister has already heard this morning—and there are postcard campaigns to confirm it—a large amount of misleading information is being given to my constituents in Gloucester and elsewhere in the country: claims that the Royal Mail and the Post Office are the same entity, and that the Queen’s head will go, the universal service disappear and prices rise. Does my right hon. Friend agree that those of us who want to see Royal Mail succeed deplore this campaign of misleading information and want the innovation from new capital investing in new equipment, such as to track parcels that will enable Royal Mail to succeed in the way all of us in this House want?
Michael Fallon
Given that Parliament has already decided that this is the right future for Royal Mail, I hope the Opposition will now join in dismissing some of the unnecessary scaremongering, and make clear what would happen if there was ever the horror of a future Labour Government: do they intend to renationalise the Royal Mail?
Mr Dennis Skinner (Bolsover) (Lab)
It is not misleading to say that when the share-owning democracy of Mrs Thatcher was launched in the ’80s and ’90s and all those public utilities were sold off and many of the employees received shares—just like the possibility of that on this occasion—the net result is that those public utilities, almost without exception, are now owned by as many as 30 countries. What guarantee has the Minister got that this will not happen to Royal Mail as well?
Michael Fallon
In a public offering it is not possible to prevent others from subscribing for the shares, but we hope that Royal Mail, given now the freedom— later this year, we hope—to access private capital, will be put on to a longer-term sustainable footing and will be able to develop its business not just here in Britain, but overseas.
Mr Jim Cunningham (Coventry South) (Lab)
I remember what happened when Rolls-Royce was privatised and the work force were given shares—I did not accept any, by the way. Within about two years those shares will be sold. This is only a sop to the work force.
Michael Fallon
I have yet to hear whether the Opposition want to renationalise any of these businesses—Rolls-Royce or British Telecom or British Airways. I think they at least owe it to the 130,000 employees of Royal Mail to make clear whether they would renationalise the business.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
15. What steps he is taking to promote sustainable economic development in the North East.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
I welcome the most recent reduction in unemployment in the north-east. Across the region we have offered support of £330 million to 101 projects and programmes through the regional growth fund with the potential to safeguard or create 66,000 jobs. We are also working with the North Eastern local enterprise partnership to agree a local growth deal based on Lord Adonis’s recent report.
Chi Onwurah
The north-east has real strengths in sustainable process energy and transport industries, but lacks the funds and the skills to support them. Since the demise of the regional development authority, there has not been an effective champion to bring this about. The regional growth fund is not getting the money through quickly enough. What is he going to do to change that, so that the skills and the finances are available to industry in the north-east?
Michael Fallon
If I may say so, the hon. Lady is taking a rather pessimistic view of her region. There is plenty of money flowing from the regional growth fund to projects, two of which I have visited on the Tyne. There is plenty more support to come through the structural fund allocation, which has also gone to the local enterprise partnership, and through the invitation that has gone to the region to bid for the single local growth fund from 2015-16.
Hugh Bayley (York Central) (Lab)
16. What outcomes his Department is seeking through its science and society budget.
Mark Menzies (Fylde) (Con)
T3. What efforts are the Minister and his Department taking to support small and medium-sized businesses in Lancashire in the export market?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
My hon. Friend might know that more resource has been made available to UK Export Finance. It is important now to ensure that more and more SMEs understand that export finance assistance is not just something for the large companies, such as Rolls-Royce and BAE, but available to SMEs up and down the country. We will market our efforts there more intensively.
Dr Alan Whitehead (Southampton, Test) (Lab)
T7. Does the Business Secretary agree that the target, set by the Treasury on a moving basis, to be met before the UK Green Investment Bank can actually become a green investment bank—that public sector debt must be falling as a percentage of GDP—presents serious challenges for people planning green and low-carbon investments for the future? If so, will he take the opportunity of the recess to seek an urgent meeting with the Chancellor to see whether he can change that formula, so that the UK Green Investment Bank can actually become a green investment bank in the not-to-distant future?
Christopher Pincher (Tamworth) (Con)
T4. Boomerang Plastics is an innovative recycling start-up based in Tamworth and looking to expand, but one of its challenges is finding the right space to expand. What are Ministers doing with the Department for Communities and Local Government to encourage developers to construct the right sorts of business parks and to encourage local authorities to offer the right sorts of planning rights to allow firms such as Boomerang to find the space to grow and expand?
Michael Fallon
My hon. Friend raises an important point. It will be for his local enterprise partnership, as part of its local growth strategy, to ensure sufficient space for the development of business parks, so that companies can grow successfully without constantly having to move from their premises and can expand next door.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
There is considerable concern among the further education college sector about the potential low take-up of the post-24 advanced learning loans and the impact that that will have on people’s finances. What assessment has the Minister made of this issue, and what help will he give to those colleges, if indeed there is such a low take-up?
Fiona Bruce (Congleton) (Con)
T6. Small businesses in Congleton and across the country struggle with the burden of regulations from Brussels. Will my right hon. Friend update the House on the work of the business-led taskforce on EU regulation, which he is chairing?
Michael Fallon
Yes, the Prime Minister and I met the taskforce last week, and I will be meeting it again tomorrow. We have issued a call for evidence, which gives companies large and small the opportunity to provide us with concrete examples of European rules and regulations, including new proposals, that pose unnecessary barriers to the growth of British businesses and need reform. I encourage all hon. Members to ask businesses in their constituencies to submit examples and evidence to the taskforce.
Kate Green (Stretford and Urmston) (Lab)
Ministers are considering responses to the consultation on the recasting of the waste electrical and electronic equipment directive. There are real concerns that the interests of large producers will prevail, so would Ministers be prepared to meet me and representatives of the independent recycling organisations, which have deep concerns, to discuss their concerns?
Michael Fallon
Yes, I would be happy to do that. I know that the consultation has instigated a number of concerns across the sector. I have spoken at one of the conferences involved, and I would be happy to meet the hon. Lady.
Mary Macleod (Brentford and Isleworth) (Con)
Brompton Bicycle Ltd in Brentford is a brilliant example of British manufacturing and engineering. It has been growing at 25% a year over the past three years, sells 40,000 bikes a year and exports 80% of what it makes to 44 countries. Will the Minister meet me and Brompton Bicycle Ltd to talk about how it can find the funding to buy new premises in order to grow even further?
Michael Fallon
I would be happy to meet my hon. Friend and Brompton Bicycle. I am already aware of how successful and ambitious a company it is. We will do what we can to help it expand further.
Oral Answers to Questions
Michael Fallon Excerpts(11 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Dominic Raab (Esher and Walton) (Con)
2. What steps he is taking to reduce business regulation for start-ups and small businesses.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
Through the red tape challenge, we have committed to scrapping, improving or simplifying at least 3,000 regulations. We introduced the ground-breaking one in, one out rule, which has saved businesses around £1 billion in regulatory costs; and from January we upped that to one in, two out. In addition, the micro-business moratorium introduced in April 2011 has protected the very smallest firms, and I hope that we can build on that when the moratorium expires next March.
Mr Raab
I thank the Minister for that answer. The Institute of Directors estimates that regulation costs British business £112 billion each year. I understand that the Government moratorium on new regulation applied to micro-businesses and start-ups, to which the Minister has referred, expires next year. Will he extend it for another three years in order to boost growth and get firms hiring?
Michael Fallon
We are looking hard at what we can do to extend that protection for the very smallest businesses from burdensome regulation from next year. In addition, we are pressing the Commission to make more proposals to implement its own commitment to a moratorium. We have seen a couple of examples from the European Union so far and we need to see more.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Minister will agree that most of the small firms we meet want light regulation, if none at all, but they also want good finance. What does he have to say about Rich Ricci, who has just been awarded a £16.7 million bonus by Barclays? What has Barclays ever done for small business in order for a man to get a £16.7 million bonus on the same day as the Budget took welfare money away from the poorest in our country?
Michael Fallon
I am not sure what that has to do with the red tape challenge, but Barclays is one of the banks that we are pressing hard to do more to lend more to small businesses, and we expect it to steadily increase the take-up of the various Government schemes on offer.
Miss Anne McIntosh (Thirsk and Malton) (Con)
Will my right hon. Friend look at removing gold-plated provisions on items such as jam, which has to be marketed as a preserve unless it has the right amount of sugar or fruit in it?
Michael Fallon
It was the previous Government who transposed the European directive but who failed to transcribe the flexibility that France and Germany have to lower the minimum sugar content in jam. We will consult on that shortly. Under this Government, not only is there more flexibility towards the European Union, but there will be more jam tomorrow.
Mr David Hanson (Delyn) (Lab)
Given that Members in another place—not just Labour peers, but a former Conservative Chancellor of the Exchequer and former Cabinet Ministers and Cabinet Secretaries—have this week rejected the Government’s shabby proposals on cash for workers’ rights, is it not right that the Government now reconsider their shabby proposal?
Michael Fallon
This House agreed before Christmas to make available this additional right. Nobody has to take it up—they cannot be bullied or harassed into it. There is no need for them to take it up, but equally there is no need for the other place to deny them the opportunity if they wish to do so.
Jonathan Ashworth (Leicester South) (Lab)
3. What recent assessment he has made of the operation of the regional growth fund.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The regional growth fund is a success, not least in the east midlands where 16 projects and programmes have access to nearly £117 million. Nationwide, 198 projects and programmes have already been finalised and can draw down their funding, including 15 from round 3 which have already benefited from the accelerated process I announced last October. The rest of the round 3 awards will be finalised in the middle of next month, including, I hope, the Leicester and Leicestershire local enterprise partnership programme, which will support businesses in the hon. Gentleman’s constituency.
Jonathan Ashworth
I think that the right hon. Gentleman intends to visit my constituency tomorrow to attend the Federation of Small Businesses conference. I am sure he will find that we have a significant number of small and medium-sized enterprises in Leicester, Leicestershire and the east midlands, and a significant manufacturing base. Despite what he has said, the east midlands appears to be bottom of the pile when it comes to regional growth fund allocations. In round 3, we received just 2% of allocations. When will the east midlands get a fair deal?
Michael Fallon
I am looking forward to attending the FSB’s annual conference with the Secretary of State in the hon. Gentleman’s constituency tomorrow, and to hearing more about how it applauds what was in yesterday’s Budget. I hope the hon. Gentleman will be there, too.
On the regional fund’s allocation for the east midlands, this is a competitive fund. There are no specific targets for each region and 19 bids have been selected in the east midlands. Subject to finalising the award I mentioned, the Leicester and Leicestershire LEP programme will support SMEs across the hon. Gentleman’s constituency with 25% capital investment grants ranging from £25,000 up to £150,000. I hope he will encourage—
Duncan Hames (Chippenham) (LD)
The regional growth fund has certainly attracted interest in Wiltshire, with bids from Melksham’s Cooper Tires and the Corsham Institute. Whether it brings sustainable energy solutions or exploits the digital economy, is this not a welcome diversification of Wiltshire’s economy?
Michael Fallon
It certainly is. The purpose of the regional growth fund is to help better balance our economy by encouraging manufacturing, especially in those regions that have been over-dependent either on public sector employment or single types of employment.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
4. If he will bring forward proposals to require companies to include supply chain issues in their annual narrative reporting.
Martin Vickers (Cleethorpes) (Con)
11. What support his Department is providing to encourage investment and growth in north and north-east Lincolnshire authority areas.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
North and north-east Lincolnshire are benefiting from over £41 million of Government investment from the regional growth fund, including the £30 million Humber local enterprise partnership that I launched in February with my hon. Friend, which will support businesses in his constituency. The Humber has also secured the largest enterprise zone allocation in England—1,200 acres over two sites—which will help to support the development of the offshore renewable industry in both north and north-east Lincolnshire.
Martin Vickers
We obviously welcome the Government’s continuing support and any further initiatives. To emphasise that Cleethorpes is a good place to start businesses, today is the fifth anniversary of the launch of the Cleethorpes Chronicle by two local businessmen. Does the Minister agree that if people show determination and enthusiasm and have a quality product, it is appropriate to start a business, even in these difficult times, as we have seen with the success of the Cleethorpes Chronicle?
Michael Fallon
I congratulate the Cleethorpes Chronicle on reaching that milestone and we should send our best wishes to Nigel Lowther, Mark Webb and the team. It is a great local paper, committed to the community and the businesses that it serves.
Roger Williams (Brecon and Radnorshire) (LD)
12. What plans he has to implement a share scheme for Royal Mail employees.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
Parliament decided two years ago that employees of Royal Mail should share in its success. It would be wrong to deny employees this any longer. They should be sharing in the company’s success and dividends, and it is our intention to have such a scheme in place at the time that we conduct a sale of Royal Mail.
Roger Williams
I thank the Minister for that encouraging reply. The better financial performance of Royal Mail owes much to the loyalty of postmen and women getting the mail out to every address in the country, even in during these difficult weather conditions. Can the Minister give us a little more certainty about the timing of this scheme and how those loyal postmen and women will benefit?
Michael Fallon
It is our intention to conduct a sale during the forthcoming financial year, 2013-14, and I confirm that at the time of that sale we intend to make a share scheme available to the 130,000 employees of Royal Mail who, as my hon. Friend says, have worked so tirelessly to turn it into a successful and profitable business and should share in that success.
Mr Russell Brown (Dumfries and Galloway) (Lab)
What assurances can the Minister give to small businesses and many individuals across the UK who rely on a well performing, six-day-a-week service to their homes and businesses? Will that remain so once Royal Mail is privatised?
Michael Fallon
Yes, it will, because Parliament put in place, in the Postal Services Act 2011, the statutory requirement for a universal postal service that is secured by Ofcom, an independent regulator, and that will exist irrespective of the ownership of Royal Mail.
Ian Murray (Edinburgh South) (Lab)
We very much support genuine employee ownership, especially for hard-working Royal Mail employees. However, we vehemently oppose this Government undermining employee ownership by attaching it to the Beecroft agenda of giving up rights at work. The Chancellor announced this policy by proclaiming:
“Workers of the world, unite!”
Well, they have: they have united against this policy, along with the Employee Ownership Association and the vast majority of responses to the consultation. The Minister is not listening to this large body of opinion, so may I press him again, following the question from my right hon. Friend the Member for Delyn (Mr Hanson), to heed the advice of Conservative Lords Lawson, King, Forsyth and Gummer who voted yesterday, with a large majority of other Lords, to dump these divisive shares for rights policies?
Michael Fallon
I note that the hon. Gentleman wants to divert the House from the question about Royal Mail and the more interesting question of whether those on the Opposition Front Bench will support this opening up of Royal Mail to private capital and the scheme to ensure that those who work for the company will share in its success.
Richard Fuller (Bedford) (Con)
13. What recent assessment he has made of the costs and benefits of international students to the UK economy.
Miss Anne McIntosh (Thirsk and Malton) (Con)
T6. I believe it is Lord Heseltine’s birthday today. I wish him congratulations. Large rafts of money are going to city regions such as Leeds and Sheffield for transport infrastructure and other projects. We feel that we will be left in the lurch, so may I ask the team what support will be given to rural areas of North Yorkshire to improve the roads and other infrastructure?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
That is a perfectly fair point, but let me reassure my hon. Friend that the single pot funding from 2015 will be allocated not simply to the cities, but through local enterprise partnerships. It is her local enterprise partnership that will be able to make a bid to the Government.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
T4. I do not want to use my topical question to talk about the obscene Barclays bonus; I want to ask whether the Secretary of State is aware of the fine example of CEEP—clean and energy efficient production—and sustainable manufacturing in our country’s industrial production. We are a world leader and we have amazing markets in China and India for this product. Will he put even more effort behind CEEP—he has done well up to now—so that we can conquer those markets?
Mark Menzies (Fylde) (Con)
T8. The north-west is at the heart of Britain’s aerospace industry, and I welcome this week’s announcement of the £2 billion aerospace technology institute. May I urge the Minister to consider the Warton enterprise zone in my constituency as a potential location for it?
Michael Fallon
We will certainly do that. The aerospace industry received an enormous boost on Monday with the announcement of £1.5 billion that is to be shared, along with another £1 billion from the private sector. I hope that that will give the industry the confidence to invest, right across the remainder of this Parliament and through to the end of the next one, in what is already one of Britain’s great success stories.
Sheila Gilmore (Edinburgh East) (Lab)
T10. The Secretary of State has often told us of his plans to rebalance the economy. Is he as worried as I and many commentators are that a huge plank of the Chancellor’s growth strategy seems to be predicated on a policy that could reinflate the housing bubble?
Emma Reynolds (Wolverhampton North East) (Lab)
As chair of the all-party parliamentary group on aerospace, I want to welcome the announcement earlier this week of the aerospace technology institute. Will the Secretary of State or the Minister say more about the timetable for its creation and what types of investment it will support?
Michael Fallon
Yes, I co-chaired the aerospace growth partnership on Monday to press the industrial side of the partnership to get on with the money made available—some £2 billion spread over seven years. I have challenged them to make sure that the money starts to get put into action so that the institute is established as rapidly as possible this year.
Neil Carmichael (Stroud) (Con)
In welcoming the industrial strategy being supported by £1.6 billion, I ask whether the Secretary of State agrees that we need to encourage our SMEs to start thinking about investing in tooling for components, especially in the automotive sector, because that is how we will further boost the values of our already impressive exports in cars?
Apprenticeships
Michael Fallon Excerpts(11 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
I can join the hon. Member for Blackpool South (Mr Marsden) in making one point: we are all in the Chamber today to celebrate apprenticeships on the second day of national apprenticeship week. I was privileged this morning to meet Jenny Westworth, the apprentice of the year, who is an aeronautical engineer at BAE Systems near Preston.
Apprenticeships offer a huge amount. They work for the economy, they work for employers and they work for apprentices. In short, apprenticeships deliver. For the economy, apprenticeships improve productivity. For employers, apprenticeships increase morale and retention, not to mention the skills that employers need. They also work for the apprentices themselves and evidence published by the Centre for Economic and Business Research shows that the average higher apprentice increases his or her lifetime earnings by about £150,000, about as much as if he or she had gone to university.
Apprenticeships deliver and that is why over the past two years the number of apprentices starting has increased so sharply. In 2010, the coalition promised 50,000 more apprentices every year. I confirm to the House today that we have already not only delivered on that promise but exceeded it. We have all but doubled the number of apprentices starting each year, with more than 1 million starts under this Government.
Michael Fallon
I shall give way in a moment.
Apprenticeships deliver and we can now set out a more stretching goal, that is, the vision that on leaving school it will become the new norm to go either into an apprenticeship or to university. Gone are the days when a Prime Minister could set an arbitrary target for how many children should go to university, forcing some down a route that did not suit them and ignoring the rest. Gone are the days of Labour’s forgotten 50%. Gone are the days of youth unemployment rising even in the boom years. Gone are the days of uncontrolled immigration as the only answer to skill shortages, of dumbing down, of worklessness, of welfare and of the race to the bottom. Instead, the Government aspire that all the young people of this great nation should reach their personal best and that they should all succeed and fulfil their potential.
Of course, such a change is an economic imperative, as we cannot afford the drag anchor of the welfare bill in this global race, but there is also a moral imperative to support everyone in reaching their potential—for the many, not the few. How will we do that? Of course, the sharp increase in the quantity of apprentices is important, but alone it is not enough; despite unemployment falling, we still, shockingly, find both youth unemployment and skills shortages together in many towns in Britain. That points to a skills system that for too long has failed. For too long, the Government directed centrally the training that should be provided, at what level and where. The result was too much poor-quality training in skills employers did not need, and not enough high-quality training in skills employers do need.
The lodestars in reforming the apprenticeship system will be rigour and responsiveness: rigour to stretch, challenge and raise the expectations of apprentices and responsiveness to the needs of employers, public or private, large or small. The Richard review, which we published in the autumn, sets out a clear and specific guide to delivering those reforms, and we shall publish our formal response shortly.
What of Labour’s response today? I certainly welcome the Opposition’s general support for apprenticeships. I welcome their specific support for more employer ownership of skills, which has support across the spectrum, from trade unions, employers and the third sector alike. However, I am disappointed by the rather negative and carping tone that we heard from the hon. Member for Blackpool South. I turn to some of his specific points.
Michael Fallon
Others need to get into the debate.
The hon. Member for Blackpool South referred to an article written by the Leader of the Opposition. I grant that it was an unusual article; it actually set out some policies—on apprenticeships. I read it to find out exactly what was there. The first policy was to introduce a national application system for apprenticeships, rather like UCAS for universities. That is a good idea. It is such a good idea that we have already brought it in and linked it to UCAS. It is called the apprenticeship vacancy service; it is run by the National Apprenticeship Service and it was used by more than 1 million applicants last year—evidently none of them from the Labour party research department.
Mr Graham Stuart (Beverley and Holderness) (Con)
Will my right hon. Friend give way?
Mr Stuart
The hon. Gentleman is clearly wrong. My right hon. Friend is prepared to give way and I congratulate him. He may not know that my constituency has the highest number of adult apprenticeship starts, and overall has one of the highest numbers in the country. I congratulate him and his colleagues on increasing the number of apprenticeships and ensuring quality. Does he share my surprise that the hon. Member for Streatham (Mr Umunna) does not mention the tripling of apprenticeships that has occurred in his constituency since Labour left power?
Michael Fallon
My hon. Friend does the House a service by drawing attention to that rather revealing statistic.
I turn to the second policy we discovered in the Labour leader’s article. He said:
“Let’s respond to employers who say they can’t hire young people with the right skills, and put them in charge of how training money is spent.”
That is a good idea, but the Prime Minister launched the employer ownership pilot in November 2011. There are now some 26 of those pilot schemes. Only this morning another one was launched, for digital marketing. The support of the Opposition—a bit late—is very welcome.
Thirdly, let us turn to the idea of apprentices in Whitehall. I agree. In 2010, we found hardly any apprentices in Ministers’ offices. There are now 1,800 across Whitehall. We announced a fast-stream apprentice scheme that will take 500 apprentices—the same number as the graduate fast stream. Other of the Leader of the Opposition’s colleagues mentioned the number of apprentices in my Department. They were wrong; there are 79 apprentices in the Department for Business, Innovation and Skills and its Executive agencies, hired despite the broader hiring freeze. [Interruption.] Other than apprentices, the Department employs no one at all aged under 19.
Fourthly, we come to the policy on procurement. The Opposition say we should put apprentices into the procurement contracts for High Speed 2. Of course, HS2 has yet to go through the House so its contracts are yet to be signed, but the Department for Transport has already made it clear that it will ensure that any procurement for the construction of HS2 meets our wider Government commitments to deliver apprenticeships and training. In the case of Crossrail, the largest construction project in Europe, the contracts signed by this Government require apprentices. I think we now know where the Opposition got the idea for all these Labour policies—they looked up what we are doing and they are playing catch-up.
Andrea Leadsom (South Northamptonshire) (Con)
I am sure my right hon. Friend is aware how delighted the parliamentary apprentices are to have been invited to meet the Prime Minister tomorrow to celebrate apprenticeship week. There are a number of apprentices, including Daisy Peck in my office, who is the former head girl of Northampton school for boys—it takes girls in the sixth form—and she is thrilled to be invited by our Prime Minister to celebrate apprenticeship week at No. 10 tomorrow morning.
Michael Fallon
I am delighted to hear that. I understand that the apprentices will also attend Prime Minister’s Question Time tomorrow, so we must all be on our best behaviour.
Michael Fallon
No. The hon. Gentleman has had four—or is it five—goes.
On the motion, we are clear that we support the principle of apprenticeships within procurement, where they deliver value for money, and we are delivering apprenticeships within procurement, but I am sorry to point out that there is a problem with the Opposition motion. First, it requires the Government to put apprenticeship contracts into all public sector contracts. That would mean all local government contracts and all devolved Government contracts, and I am not sure that the hon. Member for Blackpool South or the Opposition intended that. In addition, the motion makes no mention of value for money. For Government Members value for money in procurement is essential. Of course the evidence shows that apprenticeships normally drive up value for money, but the motion would be a rather heavy-handed approach.
I ask the Opposition, as we jointly celebrate apprenticeship week, to accept the reassurances that we have given about the importance of procurement in national contracts, to understand that their motion is technically defective, not to push it to a vote, and instead to support the Government in their drive to increase apprenticeship numbers.
I urge the whole House to get behind the wider reforms that we are putting in place for apprenticeships. Following the Richard review, which was widely welcomed, we are setting out those reform plans so that as well as the welcome increase in quantity, we increase the quality, putting employers at the heart of apprenticeships and making the system more rigorous and more responsive to skills needs. We have published regulations to increase the level to which apprenticeships can be studied, introducing for the first time apprenticeships that can lead to the same exams to qualify as a solicitor, accountant or insurance professional. By putting employers in the driving seat, we are reshaping apprenticeships to fit the modern economy—a highly skilled, highly motivated work force where each and every one can aspire to fulfil their potential. That is what our reforms will do, and I commend apprenticeships to the House.