Oral Answers to Questions
Michael Fallon Excerpts(11 years, 3 months ago)
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Andrew Stephenson (Pendle) (Con)
6. What assessment he has made of the effect of the regional growth fund on job creation in the north-west.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
To date, 59 projects in the north-west have been awarded a total of £225 million. In addition, £153 million has been granted to 16 programmes, specifically aimed at supporting small and medium-sized enterprises in the region. Taken together, this money will help create tens of thousands of jobs in the north-west.
Andrew Stephenson
The regional growth fund has been a great help to businesses across Lancashire and the north-west. In the next round my right hon. Friend can expect to see some excellent bids from Pendle. Will he confirm that he will look closely at these fantastic bids? If they are approved, they will be a real boost to Pendle and east Lancashire.
Michael Fallon
I certainly will. I am grateful to my hon. Friend for reminding the House that the fourth round of the regional growth fund is now open. I urge any colleague in the House to encourage potential applicants to apply before 20 March, not least because the fund is proving good value for money. In the north-west it is leveraging in some £5.50 for every £1 of public money spent—some 10 times the proportion of the unlamented regional development agency.
Nick Smith (Blaenau Gwent) (Lab)
Will the Minister confirm that the average cost of jobs created by regional growth funds such as that in the north-west is £33,000? This is more than the cost of jobs created by the regional development agencies, which the Government abolished.
Michael Fallon
No, I cannot confirm that figure. This is taxpayers’ money for projects that would not otherwise go ahead. They are recommended by an independent advisory panel as good value for money and they are subject always to proper due diligence.
Ian Lavery (Wansbeck) (Lab)
7. What discussions he has had with Royal Mail regarding its privatisation; and if he will make a statement.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
I regularly meet Royal Mail and the Communication Workers Union to discuss a future share sale. Since Parliament decided to secure the universal postal service through the Postal Services Act 2011, we have relieved Royal Mail of its historic pension deficit and established a new regulatory regime. The final step is to give Royal Mail access when it needs it to private capital and to honour Parliament’s commitment that at least 10% of the shares will be made available to employees.
Ian Lavery
Royal Mail is the jewel in the crown of this nation, and it is cherished by millions. There are grave concerns about the privatisation of Royal Mail in terms of price hikes, job losses and a reduction in services. May I urge the Minister to withdraw the privatisation plans and invest heavily in a publicly owned Royal Mail?
Michael Fallon
It would be very odd to deny Royal Mail—a business with a turnover approaching £9 billion—access to the capital markets that other large, successful companies enjoy, and which it will need in order to innovate and invest for the future. It would also be wrong to withhold from its 130,000 staff the chance that Parliament has given them to own shares in the company.
Mr Robin Walker (Worcester) (Con)
Having served on the Committee that considered the Postal Services Bill, I welcome my right hon. Friend’s determination to implement the will of this House and to succeed where the previous Labour Government tried and failed. Is it not clear that for Royal Mail to benefit from the enormous growth in online retail, and consequently in its parcels business, it needs to be free to invest without competing for scarce public money?
Michael Fallon
My hon. Friend puts it very well. Royal Mail, like any business, needs capital to be sustainable over the long term in order to continue to improve its efficiency, to invest, to innovate, and to seize the opportunities presented by new markets, not least those arising from online retailing. It should not have to compete for scarce public capital against other services such as schools and hospitals.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
What measures will the Minister put in place to ensure that Royal Mail is not taken over by a private equity firm following privatisation?
Michael Fallon
No decision has yet been taken on the timing and size of any share sale. The key is to ensure that a big, successful company is no longer denied access to the capital markets.
Ian Murray (Edinburgh South) (Lab)
This week Royal Mail reported that it had selected a number of agencies to assist in the
“largest privatisation since British Rail”.
The Ofcom consultation, “End-to-end competition in the postal sector”, has stated that that is not relevant to its primary duty of protecting the universal service obligation as regards rival operators cherry-picking profitable Royal Mail work without having to meet its high standards of same-price, every-place, six-days-a-week delivery. What guarantees can the Minister give that Royal Mail’s service standards will not be put at risk? Does he share my deep concerns about Ofcom’s stance on end-to-end competition?
Michael Fallon
Only the ideologues on the Labour Benches could possibly want to continue to block the access of this company to the private capital markets. Let us be clear: Parliament gave Ofcom a clear statutory duty to secure the provision of the universal service six days a week, and we expect it to carry that out. Ofcom’s consultation on delivery competition has now closed, and it will issue its guidance in the spring, subject to that duty to safeguard the universal service.
Mr Philip Hollobone (Kettering) (Con)
8. What the tobacco industry exports which created 2% of Egypt’s sovereign debt owed to UK Export Finance were used for; when those exports were made; and whether they were to the Government of Egypt or to private companies.
Mr Jim Cunningham (Coventry South) (Lab)
10. What discussions he has had with the Secretary of State for Defence on the development of the Government’s strategic defence review.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
Preparations for the review are under way. My Department is fully engaged on the industrial aspects. Together with Steve Wadey from MBDA, I co-chair the defence growth partnership, which is addressing the competitiveness of the defence sector and especially how we can better exploit the links between civil and military technologies.
Mr Cunningham
May I do something unusual, which is to thank the Secretary of State and the Minister for their help in saving the London Taxi Company in Coventry? What discussions has the Secretary of State or the Minister had with Rolls-Royce on the possible impact of its decision on the supply chain and through job losses?
Michael Fallon
I know that the hon. Gentleman and the hon. Member for Coventry North West (Mr Robinson) discussed that matter in the Department on Monday. I met Rolls-Royce yesterday. I understand that its decisions have to be made primarily in response to changes in key international defence programmes. If the hon. Gentleman is referring to the potential decisions about Ansty, he will know that any run-down there is expected to take several years and that no final decision has been taken.
Peter Luff (Mid Worcestershire) (Con)
The biggest threat to British defence companies is the shortage of engineering skills. That threatens our prosperity, their success and our security. I therefore invite my right hon. Friend to look as sympathetically as possible at the ten-minute rule Bill that I will introduce next week, which aims to inspire more young people, especially girls, to take up the exciting opportunity of pursuing a technological or engineering career.
Michael Fallon
I am grateful to my hon. Friend. He will know that the number of engineering apprenticeships and applications to study engineering are already increasing. The skills needs of the sector will be a key focus for the defence growth partnership.
Duncan Hames (Chippenham) (LD)
Redundant Ministry of Defence sites can blight a local area, but they also offer the potential for new jobs and brownfield development, as is recognised by the Swindon and Wiltshire local enterprise partnership. Will the Minister recognise that in any advice that he gives to colleagues when they are considering the bids for the second wave of city deals?
Michael Fallon
That was a most ingenious formulation in support of the bid from the Swindon and Wiltshire local enterprise partnership in wave 2 of city deals, which is under consideration at the moment. I will ensure that the use of redundant land is one of the aspects that we consider.
Ann McKechin (Glasgow North) (Lab)
11. What assessment he has made of the effect on consumer behaviour of Government advice on debt.
Stuart Andrew
A number of businesses in my constituency that I have visited have reported welcome news of an increase in orders from abroad. However, they have raised concerns about the time it takes to get export licences. In order to help those companies to remain competitive, what is my right hon. Friend’s Department doing to try to speed up efficiency in that respect?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The Export Control Organisation is currently meeting its primary target of approving 70% of licence applications within 20 working days. Last year, it met its secondary target of approving 95% within 60 working days. However, I well understand the frustration of legitimate exporters. The ECO is working with the Foreign Office to improve performance still further.
Mr Chuka Umunna (Streatham) (Lab)
The EU Council is gathering as we speak. From the common agricultural policy to the absurdity of the European Parliament sitting in two places, it is clear that the EU needs reform. It is also clear—to the extent that any reform involves a significant transfer of power from Parliament to the EU—that we all agree there should be a referendum. Does the Secretary of State agree that, although reform is crucial, the immediate priority for British business is to grow our economy, and that continued membership of the EU is fundamental to that goal?
Simon Hart (Carmarthen West and South Pembrokeshire) (Con)
T4. Will the Secretary of State join me in congratulating Sam Davies from Whitland in Carmarthenshire for doing so well in the “We Made It” competition recently? Will he also get behind that competition, as it encourages so many young people into STEM-based jobs?
Michael Fallon
I am grateful to my hon. Friend. Yes, we welcome the “We Made It” competition. Manufacturing offers young people enormous scope to do something really worth while and to be well rewarded in the process. Through programmes such as See Inside Manufacturing, we are ensuring that young people see for themselves the wealth of career opportunities in manufacturing, and understand how studying science, technology and engineering at all levels leads to well-regarded career opportunities.
Kate Green (Stretford and Urmston) (Lab)
T6. The Secretary of State is aware of concerns about anti-competitive practices in the waste electrical and electronic equipment recycling market. What will he do to protect the position of small and medium-sized recycling companies such as Mercury Recycling in my constituency? Will he meet me to discuss this issue and wider concerns?
Bridget Phillipson (Houghton and Sunderland South) (Lab)
The Secretary of State knows that Nissan is vital to the north-east’s long-term economy and provides much-needed jobs and investment. Is there not a significant risk that the uncertainty about Britain’s future in Europe, which will continue for many years, could jeopardise this?
Michael Fallon
I am well aware of Nissan’s importance to the north-east. I visited recently and have spoken to the senior management at Nissan about the Prime Minister’s speech to reassure them that we see a future for this country within a protected and enhanced single market. That is what is important for Nissan and many other companies in the sector.
Dr Julian Huppert (Cambridge) (LD)
T9. My right hon. Friend will be aware of the growing funding problems for postgraduate students. Most have to pay large sums up front, borrowing from banks or their families if they are rich enough, which creates huge social mobility problems. Has he had a chance to look at the proposals in my policy paper, “Developing a future: Policies for science and research”, or, indeed, the very similar proposals from the Higher Education Commission and the National Union of Students?
Mr Dennis Skinner (Bolsover) (Lab)
In an earlier question, on the privatisation of Royal Mail, the Minister deliberately referred to the fact that shares would be sold off to the people in Royal Mail. It almost harks back to the “share-owning democracy” of Mrs Thatcher, when she privatised all the public utilities and almost without exception those public utilities—E.ON, EDF and all the rest—are now owned by Germany, France, Spain and even further afield. That is what happens to share-owning democracies. Instead of gazing into crystal balls, read the history!
Michael Fallon
I not only read the history, I remember the history because I was here, when the hon. Gentleman and his colleagues—
Michael Fallon
I voted for it, and he and his colleagues advised the workers in BT—[Interruption]—not to buy the shares and more than 90% of them did buy them. In this instance, Parliament has quite rightly provided that up to 10% of the shares should be reserved for employees. I think that the more than 130,000 people who work for Royal Mail should have the chance to share in the success of their company.
Stephen Mosley (City of Chester) (Con)
There will be no swearing in my question.
My right hon. Friend the Minister for Universities will be aware of Chester university’s great success in getting industrial support. The vice-chancellor, Professor Tim Wheeler, the hon. Member for Ellesmere Port and Neston (Andrew Miller) and I all have a free spot in our diaries on 1 March. I was wondering whether my right hon. Friend would come and join the celebrations with us.
Oral Answers to Questions
Michael Fallon Excerpts(11 years, 5 months ago)
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Mary Macleod (Brentford and Isleworth) (Con)
8. What steps he is taking to increase the number of small and medium-sized enterprises which export to international markets.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
Exporting is a key part of the Government’s plans to return the economy to sustained and balanced growth. That is why we have increased funding to UK Trade and Investment in the autumn statement—an extra £140 million over the next two years—enabling UKTI to double the number of small and medium-sized firms supported from 25,000 to 50,000 by 2015.
Mark Pawsey
Automotive Insulations is a supplier to the motor industry based in my constituency and has increased turnover from £3 million to £14 million over the past few years, expanding its business to supply European motor manufacturers as well as those based in the UK. The current advice and support from UKTI is to focus on fast-growing markets outside Europe, but does the Minister agree that starting to export is a very big step for a small or medium-sized business and it is often easier to start exporting by supplying to our closest neighbours?
Michael Fallon
I congratulate Automotive Insulations on its extraordinary success over the past few years. Of course for an automotive company it may make sense to start with helping to penetrate the European supply chains, but in due course it may want to look further afield. In the end, this is a matter for the company to decide, but of course it is for the Government to provide help and advice.
Mary Macleod
Brentford and Isleworth is one of the fastest growing areas for new businesses in the country, with an increase of about 9%. It is important that we encourage SMEs to export around the world so that people can experience what is great about buying British. Will my right hon. Friend support and attend a trade and investment fair that I would like to organise for west London in the springtime, which will give local businesses more information on breaking into emerging markets and help them grow for the future?
Michael Fallon
I would be delighted to help with that event in any way I can, and I will ensure that officials from Shand house, UK Trade and Investment’s regional London office, help as much as they can, too. I am aware of the exporting success of companies in west London. We would like to do everything we can to assist my hon. Friend.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Minister will know that Yorkshire has a large number of manufacturing firms that export all over the world. They are particularly strong in the green sector, which the Secretary of State left out of his description a few moments ago—I am sure that he did not mean to, because he has been very supportive of manufacturing in Yorkshire. The fact of the matter is that the Treasury is the problem. We need more leadership from the Treasury and co-ordination across all Government Departments to ensure that we have the right skills and the appropriate level of investment in the manufacturing industry for this time.
Michael Fallon
I am very surprised to hear that kind of criticism after an autumn statement that increased investment allowances, announced a further round of regional growth funding and further lifted the burden of taxation on British business. British business has welcomed the autumn statement. I think that the hon. Gentleman ought to read it again.
Jim Shannon (Strangford) (DUP)
Small and medium-sized businesses are clearly the heart of the community as they create and maintain jobs. What steps is the Minister taking to ensure that we have a UK strategy that enables all parts of the United Kingdom, and Northern Ireland in particular, to benefit from international markets?
Michael Fallon
UKTI is UK-wide and, of course, does everything it can to support exports from every part of the United Kingdom. As I have said, there is an increased focus on helping small and medium-sized firms to export, which is why we are providing a new facility from April to extend credit totalling £1.5 billion for small firms that need it for longer term financing—three to five years—for contracts overseas.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
18. The improvements the Minister mentions with regard to UKTI are being recognised in Lancashire, with much more outreach work with local chambers of commerce and Members of Parliament. How will he build on that, particularly with smaller businesses that, as other Members have mentioned, often lack the personnel to attend conferences during the day?
Michael Fallon
Let me reassure my hon. Friend that UKTI will continue its outreach activity in Lancashire and the rest of the country to encourage and support as many businesses as possible. Exporting is vital for our economy and exports are now increasing again, which is why UKTI was given such a boost in the autumn statement. That means UKTI is increasing its number of international trade advisers, and we are also placing officials from UK Export Finance in the regional offices so that more businesses, particularly small businesses, can benefit from their advice.
Mr Edward Leigh (Gainsborough) (Con)
13. What estimate he has made of the costs incurred by businesses due to regulation since May 2010.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The Government are reducing the overall burden of regulation affecting business. From January we will further tighten the screw on regulation by doubling the challenge from one in, one out to one in, two out. The impact of regulation is independently verified and reported twice a year in the statement of new regulation. We published the fifth statement this week for the first half of next year, which forecasts that by July we will have reduced the annual cost of regulation to business by over £900 million.
Mr Leigh
I was told by a colleague that early in this Parliament a Minister responsible for deregulation—not the current Minister—rushed into a meeting with his colleagues to say that although his civil servants wanted to increase the number of regulations on business by 67 this month, with hard fighting he had beat them down to 57. That is still 57 extra regulations this month. Is my right hon. Friend going to bear down on that and ensure that by the time of the next general election there is a real, dynamic reduction in regulation on business?
Michael Fallon
Yes. This Government intend to be the first ever to reduce the overall burden of regulation during their time in office. If my hon. Friend looks at the fifth statement of new regulation, he will see that—significantly—more regulations will be removed over the next six months from January than will be added. As I said, the overall cost reduction to business is nearly £1 billion.
Andrew George (St Ives) (LD)
I welcome that approach, but are the Government also estimating the cost of a lack of regulation such as, for example, the practice of upward-only rent reviews for high street shops, irrespective of falling turnovers? Such rent reviews are heaping further costs on businesses and making them less viable.
Michael Fallon
There is downward as well as upward movement in that sector, but I will certainly refer the hon. Gentleman’s comments to the Minister for Housing.
Steve Baker (Wycombe) (Con)
14. What recent assessment he has made of the level of fees charged to business by regulators.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
Recent reviews by my Department through the focus on enforcement initiative have uncovered a range of problems reported by business about the way that more than 50 regulators enforce the law, including inconsistency and lack of clarity over the charging of fees.
Steve Baker
As my right hon. Friend will know, regulatory sloth and incompetence are currently damaging a business in my constituency and one in South West Bedfordshire. Will he take steps to ensure that regulators are not incentivised to damage businesses through unjustifiable fees?
Michael Fallon
I am aware of the issue in my hon. Friend’s constituency concerning the implementation of the biocidal products directive. Systemic, not just isolated, problems are damaging the relationship between regulators and industry. Last month we acted to stop regulator charging regimes that incentivised regulators to increase their costs to industry, and we will place a duty on regulators to bear down on costs and report publicly on how costs and fees are calculated. Regulators will have to demonstrate that they are efficient, and give industry the information it needs to hold regulators to account.
Gavin Williamson (South Staffordshire) (Con)
15. What steps he is taking to encourage greater investment in the manufacturing sector.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
Manufacturing is crucial to economic recovery. The autumn statement announced measures to encourage greater investment in manufacturing, including a significant increase in the annual investment allowance from £25,000 to £250,000; £310 million for the regional growth fund; and an extra £120 million for the advanced manufacturing supply chain initiative. The House will also welcome the announcement by Nissan yesterday of a £250 million investment in a new premium brand car to be built in Sunderland, which the Government expect to support under the regional growth fund.
Gavin Williamson
The recent increase in capital investment allowances will create a massive boost for small and medium-sized manufacturing businesses in south Staffordshire and the west midlands. What assessment has the Minister made of the impact that that will have on manufacturing businesses across the United Kingdom?
Michael Fallon
I expect the increase in capital allowances to have a positive effect. Under this Government, manufacturing share of gross domestic product is rising, but under the previous one nearly 1.7 million manufacturing jobs were lost, and our manufacturing share of GDP declined. The measures we announced in the autumn statement, together with the measures we have taken to rebalance our economy and put our public finances in order, leave British business very well placed to continue the recovery.
Joan Walley (Stoke-on-Trent North) (Lab)
Will the Minister join me in welcoming the acquisition by Steelite International of Royal Crown Derby as a sign that we need to show leadership and increase regional growth funding? Will he meet me and other Stoke-on-Trent MPs to discuss the Government’s continued opposition to the anti-dumping measures against ceramic tableware from China? It is important that we invest in UK manufacturing on a level playing field. That is an issue that the Government need to address.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
On the regional growth fund, the hon. Lady will know that the Chancellor announced another £310 million in the autumn statement, and 85% of the projects in rounds 1 and 2 have now started, but I hope to tell the House how we will apply the additional money early in the new year. I hope that Stoke will be one of the areas to benefit. The allegation about anti-dumping is a very serious one, and I am happy to meet her and her colleagues to discuss it further.
Mr Christopher Chope (Christchurch) (Con)
Do the Government believe in the right of each individual and business to choose the bank they wish to have operating on their behalf, and if so will the Government guarantee that no existing customer of Lloyds bank, whether a business or an individual, will be forced to transfer their account to the Co-op without their express consent?
Oral Answers to Questions
Michael Fallon Excerpts(11 years, 6 months ago)
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Harriett Baldwin (West Worcestershire) (Con)
6. What assessment he has made of the contribution of new start-ups to economic growth.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
One of the main contributions is the number of jobs created. The best estimate that we have is that start-ups are responsible for a third of all jobs created. Start-up activity has remained highly resilient, with Companies House reporting over 450,000 newly registered companies in 2011-12—the highest number since 1997-98.
Harriett Baldwin
I am sure that the Minister will welcome this week’s CBI report showing that small and medium-sized enterprises are very optimistic about adding jobs in the year to come. However, what would he say to a start-up in my constituency, Energetic UK, which builds eco classrooms for schools? It is run by very experienced people, but because it is a start-up they do not have the three years’ annual accounts needed to get local authority contracts. I have written to him about this company and wonder what the Department could do to help.
Michael Fallon
Instructions to contracting authorities emphasise that the assessment of financial risk should be based on a business judgment, not on a purely mechanistic application of financial formulae such as value of turnover or three years’ accounts, which could unreasonably shut out start-up companies.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Small businesses are being held back from expanding and taking on extra workers because they are unable to get the finance they need. This week Dave Fishwick, also known as Bank of Dave, addressed a group of MPs about a model of community banking that has worked in his area. What more could the Government do, particularly given the failure of their Project Merlin scheme, to ensure access to finance and better relationship banking in communities such as mine?
Michael Fallon
I am not sure that we need lectures from a party that introduced six new regulations every working day during its 13 years in office. We have cut red tape and business tax. There is an issue with access to finance. That is why we have set up the business bank, the funding for lending scheme, and a range of other schemes. It is now up to the banks to rebuild their relationship networks to make businesses more aware of the appeals mechanism. We are encouraging the British Bankers Association to do that to make sure that the money that the Government and the taxpayer are providing gets through to the companies that need it.
Richard Fuller (Bedford) (Con)
The Minister understands that every new successful entrepreneur is a new job creator, a new wealth creator, and a new net contributor to paying for our public services. Does he also understand the importance of the intention of people to become entrepreneurs? What is the Department doing to strengthen the entrepreneurial culture in our country?
Michael Fallon
We shall be playing our part in next week’s global entrepreneurship week, with 2,500 events throughout the country. I shall also be promoting a range of other Government schemes such as the CEiS scheme, which encourages more investment by entrepreneurs in start-up companies, and a number of other schemes that encourage enterprise in our schools and colleges to help those who are thinking of starting up companies as soon as they leave further or higher education.
Nick Smith (Blaenau Gwent) (Lab)
On economic growth, does the Minister agree with the National Audit Office’s assessment that a “significant portion” of the regional growth fund has been
“allocated to projects that create or safeguard relatively few jobs for the money invested”?
What steps is he going to take to address this concern?
Michael Fallon
I do not wholly accept that criticism. The regional growth fund has been a key part of creating and safeguarding 500,000 new jobs in rounds 1, 2 and 3. I find the logic of the National Audit Office report somewhat perverse. It argues that we should look only at net jobs. If a plant in the hon. Gentleman’s constituency closed with the loss of 500 jobs and 450 of the people affected were subsequently employed elsewhere, he would not stand up in this House and say that he had only lost 50 jobs.
Sir Nick Harvey (North Devon) (LD)
Does the Minister agree that new start-ups benefit from grant aid in particular? To that end, will he ensure that the UK takes advantage of EU transition zones in the next funding round, and will he structure them in accordance with the Heseltine recommendations of local flexibility to ensure that new start-ups are not put in a straitjacket and are unable to use them?
Michael Fallon
Yes, I will certainly look at that. We are now preparing how we manage and administer the programmes under the new multi-annual financial framework, which will begin in January 2014 and last until 2020. I want to make sure that we have a smaller number of programmes across the United Kingdom and that we therefore minimise the differing costs and start dates under the previous seven-year framework. We need a simpler approach to the cohesion funds, but I certainly take the hon. Gentleman’s point on the importance of the transition regions outside the category A regions.
Mr Russell Brown (Dumfries and Galloway) (Lab)
7. If he will establish an independent body to review the relationship between big pub companies and tied landlords.
Pat Glass (North West Durham) (Lab)
15. What assessment he has made of the latest construction output figures; and if he will make a statement.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The latest figures from the Office for National Statistics show that construction output fell by 2.5% in the last quarter, but overall gross domestic product increased by 1%.
Chris Williamson
Earlier this year, the Secretary of State gave a commitment that the Government were taking steps to address the decline in construction output, but this week’s construction trade survey showed, for the first time ever, a decline in every single construction sector. What has gone wrong?
Michael Fallon
There are various surveys; another construction survey shows that output increased in October. In September, we announced a housing and planning package that will deliver up to 70,000 new homes and 140,000 jobs, with a £40 billion guarantee for infrastructure projects and £10 billion for new homes. We have also introduced the Growth and Infrastructure Bill to speed up the planning system and unlock new investment in housing and infrastructure. I am surprised the hon. Gentleman voted against it on Monday night.
Michael Fallon
It is being so cheerful that keeps you going, isn’t it? I would have hoped that the hon. Lady welcomed the £4.5 billion contract won by Hitachi to build the next generation of inter-city trains, creating 900 new jobs in north-east England. The north-east also did particularly well under round 3 of the regional growth fund, with 29 bids selected, worth £120 million, creating or safeguarding 30,000 jobs. I am looking forward to my visit to the north-east next week to open new factories in Blyth and on Tyneside.
Mr Iain Wright (Hartlepool) (Lab)
The 2.5% quarterly drop in construction output to which the Minister referred is dire enough, but year on year, activity in the construction sector has fallen by a massive 12%, and further decline is predicted through to at least 2014. The sector is crying out for assistance from, and co-operation with, a Government who value construction as an important part of an active industrial strategy. Will the warm words, the excuses, the complacent tone that we have heard this morning, the protestations of just how difficult it is and the bland and vague promises of help in future stop, and will the Minister take decisive action that will help the construction sector now?
Michael Fallon
As I have already said, we are investing £4.5 billion to fund new affordable homes over the spending review period, all of which is committed to be spent in this Parliament. That is leveraging in a further £15 billion of private sector investment. We are on track to deliver 170,000 affordable homes by 2015.
Sir Bob Russell (Colchester) (LD)
14. If he will bring forward legislative proposals to prevent owners of businesses which have failed with debts outstanding from starting new businesses of an identical or similar nature.
Mr Clive Betts (Sheffield South East) (Lab)
18. What recent estimate he has made of the number of jobs that will be created by the regional growth fund.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The regional growth fund will generate over half a million gross jobs over the period 2011-2021, with 80% of the impact coming in the first five years. Some 300,000 jobs will be delivered by projects and programmes in rounds 1 and 2, and 240,000 from bids selected for round 3. In rounds 1 and 2, eight out of 10 projects and programmes have now started and 149 bidders have now signed final agreements.
Mr Betts
When the regional development agencies were in existence, they provided important match funding to enable European regional development fund money to be properly used. When the Communities and Local Government Committee looked at this, we suggested that a portion of the regional growth fund be earmarked to ensure that all our ERDF money could be properly spent. That suggestion was turned down. If we do not spend all the ERDF money to ensure that we create the maximum number of jobs, will it be the Minister’s responsibility or that of his colleagues in the Department for Communities and Local Government?
Michael Fallon
We are certainly looking at how we can spend money better in the next seven-year framework. There has been underspend, not least because there were so many programmes. I am trying to rationalise and simplify them, working with colleagues in the three other Departments affected. The House will want to note that the regional development agency Yorkshire Forward employed 434 people and spent a large amount of public money, but did not leverage in anything like the amount of private sector money that the new regional growth fund is doing.
Jane Ellison (Battersea) (Con)
T1. If he will make a statement on his departmental responsibilities.
Mr Robin Walker (Worcester) (Con)
T3. Having recently taken a trade delegation of Worcestershire businesses to China, as per my entry in the register, I was impressed by the support from UK Trade & Investment that was available to small and medium-sized enterprises, many of which received sponsorship towards the cost of the trip. What is the Minister doing to ensure that the message gets out about the help that the Government are providing to smaller companies to export to the world’s fastest growing markets?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
I congratulate my hon. Friend, who I think took part himself in a trade mission to China last month. I encourage other hon. Members to follow in his footsteps.
UK Trade & Investment is building relationships with its private sector partners to increase awareness of its services for exporters throughout the networks. UKTI will host export week from 12 to 16 November, when there will be more than 100 events around the UK designed to reach out to small and medium-sized enterprises, including events being organised in the west midlands to promote forthcoming market visits to Austria and Romania.
Jack Dromey (Birmingham, Erdington) (Lab)
T2. Jaguar Land Rover and Tata have committed to Birmingham and Britain, transforming the Jaguar plant in my constituency into a world-class success story. Just when the plant is taking on 1,100 workers, the High Speed 2 route unnecessarily threatens its rail terminal, which would have serious implications for the company and the community. Will the Secretary of State intervene with his counterpart in the Department for Transport and meet me, because nothing must be done to put at risk the success of the biggest plant in Birmingham?
Stephen Mosley (City of Chester) (Con)
T8. Chester has seen record numbers of new businesses being set up in the past year, with 305 being registered during the first six months of the year—a 323% increase on the year before. Does the Minister agree that these and other recent figures show that the work that the Government are doing to encourage private sector growth and redress the north-south imbalance is beginning to deliver results in the north-west of England?
Michael Fallon
That is encouraging news and shows the strength of the small business sector in the north-west in particular. The key to encouraging small businesses is to continue to cut back the burden of red tape imposed by the last Government, to reduce the level of business taxation imposed by the last Government and to ensure that they have full access to finance through the banking system.
Alex Cunningham (Stockton North) (Lab)
T4. I am grateful to the Secretary of State for meeting my hon. Friend the Member for Sedgefield (Phil Wilson) and me to discuss the rejection of the bid for a regional growth fund grant by Durham Tees Valley airport and for his offer to meet representatives from the airport and the local enterprise partnership. Will he reaffirm his support for regional airports as drivers of economic development, and tell the House what he can do to help our Durham Tees Valley airport to deliver on its development plan and ensure that the airport is sustained well into the future?
Mrs Linda Riordan (Halifax) (Lab/Co-op)
T5. Every pound invested in the construction industry generates nearly three in economic activity. What support is being given to construction companies, such as Marshalls in Halifax, to get them building, boost the construction industry and protect and create jobs now—before it is too late for these companies?
Michael Fallon
The best way that the hon. Lady can help that company is to support our proposals to unlock new housing, particularly affordable housing, and new infrastructure as set out in the Growth and Infrastructure Bill, which unfortunately the Labour party voted against on Monday night.
David Mowat (Warrington South) (Con)
Earlier the Secretary of State gave us an update on the good progress we are making on the green investment bank. Can he confirm, however, that EU state approval specifically excludes the nuclear supply chain, which is a major low-carbon industry, and that organisations such as Sheffield Forgemasters will be excluded if we do not appeal that?
Michael Fallon
I will certainly do that. All unsuccessful bidders are offered feedback from the regional growth fund secretariat, and if that has not happened, I am happy to arrange it for Polestar in the hon. Gentleman’s constituency. There were a number of other successful bids in the Sheffield and Yorkshire region, which I hope he will acknowledge will bring more growth and jobs to Sheffield.
Tim Farron (Westmorland and Lonsdale) (LD)
Perhaps the most valuable long-term economic legacy of the Olympics will be a boost in UK tourism. To achieve that we will need a few high-profile attack brands. London will of course be one of them; another must surely be the Lake district. What plans do the Government have to make the Lake district an attack brand for UK tourism?
Jenny Chapman (Darlington) (Lab)
The Minister of State has been to Darlington and should be, but probably is not, embarrassed by the decision he made to decline the regional growth fund bid for Durham Tees Valley airport. Is he as shocked and frustrated as we in the north-east are to learn that there is now £1 billion of unallocated RGF money in his Department’s coffers?
Michael Fallon
I have not only been to Darlington, as the hon. Lady knows, but I spent 10 years of my life there—and, in the interests of social mobility, I was happy to give her predecessor a leg up the political ladder. I look forward to my visit to the north-east next week. The Secretary of State has already explained the circumstances in which the bid for the airport was turned down, but I have to tell her that the north-east did extremely well in round 3 of the regional growth fund. I look forward to hearing more about some of the successful projects when I visit next week.
Neil Carmichael (Stroud) (Con)
I welcome the good news that the British Antarctic Survey is to continue as an independent organisation. May I underline the need to ensure that it remains on a firm and sustainable footing, and also add my thanks to the Minister for helping in that matter?
Mark Durkan (Foyle) (SDLP)
Ministers tell us that they are well minded against capricious regulation, perverse taxation and over-interpretation of EU judgments. Will one of them therefore listen to the consortium of intermediate alcohol producers and exporters across the UK? They have profound concerns about the impact on their business of HMRC’s changes to notice 163, which go far beyond a one-off adjustment to a marginal tax rate.
Michael Fallon
I am certainly prepared to look at that. One of the purposes of the red tape challenge was to ask businesses themselves what were the issues constraining growth, and I am happy to look into that matter for the hon. Gentleman.
Mr Marcus Jones (Nuneaton) (Con)
I was disappointed that I could not join my right hon. Friend the Secretary of State on his recent visit to the MIRA technology park. Despite my personal disappointment, will he join me in celebrating this world-class project, which will create 2,000 jobs in the midlands region, and does he agree that it has been facilitated by the regional growth fund and the enterprise zone policies of this Government?
Barry Gardiner (Brent North) (Lab)
The growth of businesses in rural areas is being constrained by the lack of access to broadband. Even where businesses can achieve the Government’s target of 2 megabits, they are finding that that is the download speed, and they are still constrained by the greatly inferior upload speed. Will the Government consider reassessing the 2015 target of 2 megabits?
Michael Fallon
I will certainly do that. This is an issue for businesses in rural areas across the country. Clause 7 of the Growth and Infrastructure Bill will help to accelerate the roll-out of broadband, not least in rural areas, but the hon. Gentleman joined his party in voting against it on Monday night.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I think that most of us in the House would admit that the Secretary of State is passionate about manufacturing and business, and he exhibited that last Thursday when he came to Huddersfield to visit our textile training centre of excellence. Why cannot we have more all-party agreement on some of the challenges that we face? The recommendations in the Heseltine review give us an opportunity to adopt a common strategy across the House. Is that a challenge that the Secretary of State is willing to take up?
Oral Answers to Questions
Michael Fallon Excerpts(11 years, 8 months ago)
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Ian Mearns (Gateshead) (Lab)
9. When he expects all bidders from the first round of the regional growth fund to receive the funds allocated to them.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The regional growth fund is a three-year fund and we expect all the £2.4 billion allocated to be fully spent in that time. In round 1, 44 of the 67 contracts awarded have been finalised, totalling some £340 million, of which £220 million has already been drawn down. Of the other 23, 11 have been withdrawn and the remaining 12 are being processed.
Ian Mearns
I welcome the Minister of State to his new role. Having formerly been the MP for Darlington, at least he knows where the north-east is.
The regional growth fund has been mired in delay, chaos and confusion and, for some companies, no little uncertainty. How can we be certain, despite yet more reassurances, that winning bidders will receive their long-awaited awards?
Michael Fallon
My predecessor, the hon. Member for Hertford and Stortford (Mr Prisk), can be proud that rounds 1 and 2 of the fund now involve some 149 projects and programmes, delivering about 330,000 new jobs and drawing in nearly £5 billion of private investment. The bid for Gateshead college in the hon. Gentleman’s constituency was successful in round 2. A final offer letter was sent to the college at the end of July, and the money is there waiting for the college to take it up.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
I welcome the Minister to his new role and look forward to having the opportunity to question him at some stage in the BIS Committee. May I draw his attention to the fact that in the black country some companies that were successful applicants in round 2 of the RGF have still not had contracts issued, with some waiting for as long as 10 months, and that business opportunities are being lost as a result? Will he undertake to look at this rigorously in order to speed things up?
Michael Fallon
I certainly look forward to appearing in front of the hon. Gentleman’s Select Committee.
I am happy to look at any specific examples of delay that the hon. Gentleman can produce. I want in round 3 to accelerate the process—in particular, to shorten the gap between announcement and conditional offer and between conditional offer and completion of due diligence. He will understand that it is necessary, when public money is involved, for those due diligence checks to be carried out. However, I will look at what he has said and we will do everything we can to accelerate the approval process.
Sarah Newton (Truro and Falmouth) (Con)
11. What steps he is taking to protect and promote access to community learning.
Annette Brooke (Mid Dorset and North Poole) (LD)
20. What recent steps he has taken to support small and medium-sized businesses.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
In total, 450,000 new businesses were registered last year compared with 360,000 in 2009-10. We have cut corporation tax rates to an all-time low, we continue to cut red tape, we are incentivising bank lending, and we have a range of other schemes to support high-growth businesses in particular.
Christopher Pincher
I welcome my hon. Friend to his post and I welcome his answer. One of the concerns that SMEs in my constituency have is that, whereas previously they had access to overdraft extensions, which represent cheap credit, banks now insist on collateralised loans, which are repayable over a term at a rate over base, which represents more expensive credit. Will the Government’s innovative reforms result in not just an extension of credit, but a reduction in its price?
Michael Fallon
I am grateful to my hon. Friend. He is exactly right: cheaper credit is the key for many small companies. The whole aim of the funding for lending scheme is to ensure that banks pass on the reduction in the cost of the money that they themselves are accessing. The Bank of England will monitor that, but my Department will check that each bank continues to do it.
Annette Brooke
I welcome the Minister to his post. Undoubtedly, many small firms are getting a raw deal from the banks, with increased charges and limited credit. The board of Wimborne business improvement district is exploring the possibility of setting up a “bank” of Wimborne in conjunction with a local credit union, the idea being to go back to old-style banking with strong local relationships. What comment would the Minister make about that?
Michael Fallon
I know that my right hon. Friend the Secretary of State has already met my hon. Friend’s constituents to discuss the issue, and I believe that he has already met the founder of the Bank of Dave as well. One of the recommendations of the Independent Commission on Banking was that the Financial Services Authority should look again at the requirements for a banking licence, to see whether they are too onerous and disproportionate for the providers of very small credit. We expect the FSA to publish its recommendations shortly and I would be very happy to discuss them with my hon. Friend.
Mr Mike Weir (Angus) (SNP)
Many small businesses in my constituency run a post office as part of their business, and they are very worried about the chipping away of business and, particularly, the threat of losing the DVLA contract. What is the Minister’s Department doing to encourage the DVLA to stick with the Post Office?
Michael Fallon
I cannot comment on any specific contract that may be up for renewal. Of course, the Post Office has to live in a competitive world, but I will certainly look at what the hon. Gentleman has said.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Late payments affect the confidence of SMEs to make purchases and to pay bills and even staff salaries. In this time of a double-dip recession, does the Minister agree that implementing the European Union directive on late payments would be a great help to SMEs?
Michael Fallon
It is extremely important, particularly for small companies, that their bills are paid promptly. In Government, we have taken steps to encourage Government Departments and public agencies to pay their suppliers promptly. It is also important that we look very carefully at any specific target that may encourage people to pay on the final day set in the target, rather than earlier as they would otherwise have done. I will certainly have a look at what the hon. Lady has suggested.
Heidi Alexander (Lewisham East) (Lab)
14. What recent discussions he has had with his ministerial colleagues on the UK Border Agency’s decision to revoke the licence held by London Metropolitan university to teach international students.
Stephen Mosley (City of Chester) (Con)
16. What recent assessment he has made of the health of the British automotive sector; and if he will make a statement.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The British car and truck industry is strong and growing. More than £6 billion of investment has been committed to it by global investors including BMW, Nissan, Jaguar Land Rover and, as we have heard today, Honda. More than 80% of the vehicles made here are exported, and exports now exceed imports in value for the first time since 1975.
Stephen Mosley
I welcome my hon. Friend to his post and thank him for the welcome news that he has just given. Will he assure us that he will use his new post to encourage exports by taking every opportunity to talk up and promote UK plc, unlike Opposition Members, who seem to delight in constantly talking down the success of British industry and talking down our economy?
Michael Fallon
I will certainly do what my hon. Friend suggests. I met some of the key players in the industry yesterday. The Government provide significant support for research and development, training, and improving the UK’s sourcing of the supply chain in this important industry. I announced a further £9 million yesterday for a research and development centre for energy storage to capitalise on the growing electric and hybrid vehicle battery market. The Secretary of State will today visit Honda to welcome the 500 new jobs that it is creating in Swindon. I hope that the Labour party will welcome that vote of confidence in what the Government are doing.
Meg Munn (Sheffield, Heeley) (Lab/Co-op)
21. Automotive companies and many other companies rely on skilled engineers. Whenever I raise the issue, the Government talk a great deal about the importance of getting women engineers into such companies. However, they have entirely cut the grant to the UK Resource Centre for Women in Science, Engineering and Technology, which was ensuring that good engineers got into jobs, and have given a minuscule amount of their budget to the royal societies and the Royal Academy of Engineering. I welcome the Minister and the rest of the team to their posts. Will he ensure that this matter is looked at again so that some of the jobs in these companies go to women engineers?
Michael Fallon
I am grateful to the hon. Lady for what she says, and I am happy to look again at the matter. The Government are working with the Royal Society to see what can be done to encourage more women into engineering, and specific help is available from Government to help with engineering training, particularly for the automotive industry.
Mr Speaker
The hon. Member for Sheffield, Heeley (Meg Munn) has provided an object lesson to new Members in how to shoehorn one’s own question into someone else’s, and we are greatly obliged to her.
Oral Answers to Questions
Michael Fallon Excerpts(11 years, 8 months ago)
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Michael Gove
I am grateful to the right hon. Gentleman. He has raised the case of the academy in Wallsend in his constituency brilliantly. My officials are looking at what we can do to build on that school’s successes.
Michael Fallon (Sevenoaks) (Con)
Will the Secretary of State confirm that from this month it will no longer take a whole year for schools to dismiss the very small minority of teachers who turn out to be professionally incompetent? Will he reassure us that that is just one of a series of future reforms that will give schools and head teachers more control over their own schools?
Oral Answers to Questions
Michael Fallon Excerpts(12 years, 7 months ago)
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The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)
I am grateful to the hon. Gentleman for his question. We are looking at the OFT’s powerful report and consulting colleagues in the Treasury, and we will come back to the House in due course.
Michael Fallon (Sevenoaks) (Con)
T3. In formulating his response to the Beecroft review, will the Secretary of State bear in mind the interests of hundreds of thousands of people who are currently locked out of the labour market, particularly youngsters who might well be prepared to waive some of the more generous job protection provisions in return for that vital first start?
Mr Davey
My hon. Friend will know that the Chancellor has announced that we will move the period of unfair dismissal from one year to two years—I know that my hon. Friend welcomes that—which will deal with exactly the point he has made. He will also know that we have an employment law review and a red tape challenge to ensure that we have employment laws in this country that will make our labour market fair and efficient.
Oral Answers to Questions
Michael Fallon Excerpts(12 years, 7 months ago)
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Michael Fallon (Sevenoaks) (Con)
17. Whether academies are able to move in-service training days to dates outside term time.
The Parliamentary Under-Secretary of State for Education (Tim Loughton)
Academies are able to allocate time for teachers’ learning and development, including training days, at the most suitable time for the academy and its staff, including outside an academy’s published term time.
Michael Fallon
Given the inconvenience to some parents when in-service training days are simply tacked on to the half-term holiday, does my hon. Friend agree that the evolution of academies and free schools provides an opportunity to see how we can better match the training needs of teachers to the school year?
Tim Loughton
My hon. Friend makes a very good point. Of course, one advantage of academies is the flexibility that they can offer in training their teaching staff. Of course, that is also an advantage for the pupils and their parents, who may have to make arrangements for child care when training days are taken during term time. That flexibility is available to academies, and I hope that it will benefit everybody.
Oral Answers to Questions
Michael Fallon Excerpts(12 years, 11 months ago)
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Vince Cable
Of the leading Merlin banks, two have met their targets, which demonstrates that the demand is there for banks that are able and willing to change their culture of lending. Of course, we have taken the previous Government’s arrangements further by bringing private banks that are not owned wholly or partly by the taxpayer into the agreement. They are undoubtedly taking it seriously, and we are making it absolutely clear that we expect the agreement to be delivered and that the volume of lending to SMEs will increase.
Michael Fallon (Sevenoaks) (Con)
Will my right hon. Friend reassure us that he is ready to do a little more than just monitor this situation? In particular, he should not allow banks to get away with the excuse that the demand is not there, when it is the price of the loan and the terms attached to it that are so often too difficult for struggling small businesses who need the credit.
Vince Cable
My hon. Friend is right that there is a problem of discouraged demand. We have just launched a major survey to drill down a little further into the complex facts of bank lending and to find out how serious the problem of discouraged demand actually is. However, this is not just a question of monitoring the situation. A key element of the Merlin agreement is that senior executives in the banks will have their remuneration linked to their performance on small business lending. I am currently insisting that they provide more information about how those incentives work.
Oral Answers to Questions
Michael Fallon Excerpts(13 years, 3 months ago)
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Michael Gove
I had the opportunity to visit the hon. Lady’s constituency on Thursday, when I spoke to staff at Mowden Hall, the Department for Education headquarters in Darlington. I am pleased to say that I am the first Secretary of State to visit Darlington and Mowden Hall since the right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett), which is indicative of this Government’s commitment to the north-east, which was sadly not shared by the previous Administration.
A response to the Government’s review of vetting and barring will be made. The House will be informed of the details first. The one thing that we know is that the bureaucratic burden on the voluntary sector will be lifted. We will not only have a more proportionate system, but more children will be kept safe. Above all, we will ensure that volunteers and those who do so much to help in our society are given the trust that they need in order to carry on doing the wonderful work that they do.
Michael Fallon (Sevenoaks) (Con)
T9. Will Ministers be prepared to look again at the rather puzzling exclusion of classical civilisation from the list of humanities scored in the English baccalaureate? Is classical civilisation not a humanity?
Michael Gove
I am tempted to reply, “Timeo danaos et dona ferentes,” which, broadly translated, means, “Beware of geeks bearing gifts.” However, my hon. Friend is an impassioned champion of both Latin and Greek and the wider application of the classics in state schools. Latin is now on offer in more state schools than independent, fee-paying schools, and Latin and Greek are included in the English baccalaureate, along with modern foreign languages. His impassioned advocacy of classical civilisation certainly weighs with me.
Secondary Schooling (Sevenoaks)
Michael Fallon Excerpts(13 years, 8 months ago)
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Michael Fallon (Sevenoaks) (Con)
I am grateful for the opportunity to raise the issue of secondary schooling in Sevenoaks. Parents in the northern part of my constituency have a choice of existing secondary schools in Swanley and Hextable. They can choose the Leigh technology academy and the new Longfield academy, and they also have access to the Wilmington and Dartford grammar schools further north. I am sure that all those schools are looking forward to the package of reforms that is coming from the Department for Education, giving head teachers and their governors more freedom to decide for themselves about the education they deliver.
So I shall focus on Sevenoaks itself. It is particularly appropriate to do so in the week that the new Knole academy opens its doors. There is always something exciting about the launch of a new educational venture and the promise that it holds for a whole new generation of pupils, and I know that the Minister will want to join me in wishing the new academy well under the leadership of its principal, Mary Boyle. It is also right to pay tribute to the enormous personal contribution of the lead sponsor, Gordon Phillips, and to the commitment and hard work of Mike Bolton and his team from Sevenoaks school, the co-sponsors, as well as to the support from Kent county council.
The Knole academy replaces two single-sex schools, the Bradbourne school for girls and the Wildernesse school for boys, and their replacement has involved much discussion and consultation over the past couple of years, not least with parents who, initially of course, supported single-sex schooling. One of the major reasons why those parents were in the end won over to the concept of a new academy, however, was the promise of a new building.
The Bradbourne site was already inadequate, even for the girls’ school that was sited there; it became too small. The Wildernesse site consists of a series of buildings, some of which are more than 60 years old. In fact, the school opened its doors 60 years ago this very month, and its buildings are certainly well past their fit date and need renewing.
Operating the new academy, which is supposed and aims to coalesce two previous schools, is much more difficult on two separate sites that are well over a mile apart. Operating on two sites adds considerably to the costs and management issues and involves the duplication of a whole range of functions that simply would be unnecessary if the school were on a single site. While the site is still split into two halves, it is also difficult for the new management team, educationally I suspect, to build quickly the new ethos and purpose that they seek for a single, all-ability, co-educational school.
The new building was originally promised for 2012, and I must press my hon. Friend the Minister on how much longer it will be delayed. We must bear in mind that the academy has already been delayed, with its launch being about a year later than originally envisaged. That is nothing to do with my hon. Friend; it is down to the long delay in getting Ministers in the previous Government to sign the revenue funding agreement. What will give parents real confidence is a commitment by this Government to the principle of a new building and some indication of the likely timetable. I have pressed the matter several times with the Secretary of State, and as my hon. Friend the Minister knows I have written on the subject to his colleague Lord Hill. I hope that my hon. Friend agrees that parents are now entitled to a firmer indication of when a new building will be started, and when they are likely to be able to move to a single site.
I want to raise one adjacent issue. Despite the arrival of the new, all-ability academy, a significant number of children in Sevenoaks will continue to choose the grammar school route that the selective system in Kent offers. It is right that they continue to have that choice, which has, in recent years, become more restricted owing to the pressure on grammar school places across west Kent. We face an increasing birth rate and the development of some significant new housing. It cannot be right for children in Sevenoaks who succeed in passing the 11-plus then to be allocated grammar school places as far away as Folkestone or Ashford—or indeed, allocated places at non-selective schools, or told to continue to fight for a grammar school place through the tortuous process of waiting lists and appeals. That is especially unfair when so many places—more than 300—are given by Kent schools to out-of-county applicants.
These are currently matters for the adjudicator, who is considering a number of appeals to the existing admissions schemes, and I would not expect the Minister to comment in any detail on that. I am sure, though, that he would sympathise with my view that grammar schools that recruit some numbers from outside the county, as they are entitled to do, need to remember that they are Kent schools paid for and supported by Kent council tax payers and supported by parents who have chosen to live under a selective system.
My main purpose tonight is to mark the launch of the new Knole academy, to wish it well as the first new secondary school in Sevenoaks for a generation, and to ask the Government, in the shape of the Minister of State, to make the commitment to the new building that is desperately needed if the academy is to be a success.
Sir John Stanley (Tonbridge and Malling) (Con)
My hon. Friend has made a very powerful case for funding for the new Knole academy. He will be aware that the secondary schools in Sevenoaks, including Knole academy, are a major source of secondary education for my constituents in Edenbridge, which sadly lost its secondary school some years ago. I want to say to my hon. Friend the Minister that I support most warmly and strongly the case that my hon. Friend has made for the funding of Knole academy, which will be of great benefit not only to his constituents in Sevenoaks but to my constituents in the Edenbridge area.
Michael Fallon
I am most grateful to my right hon. Friend. He reminds me that the new academy expects to draw pupils from a wider area than my constituency—indeed, from right across west Kent, as Bradbourne school for girls did before it was merged into the academy.
The point I am making—I will not labour it further—is that for the academy to be a success in the short, medium and longer term, it needs to be established in modern, fit-for-purpose buildings on a single site rather than spread across the two sites of the two previous schools. With that, I hope that my hon. Friend the Minister will be able to give me some comfort.