Oral Answers to Questions

Nick Hurd Excerpts

Tuesday 8th November 2016 Commons Chamber

[The Minister for Climate Change and Industry (Mr Nick Hurd)]

Innovation is at the heart of our industrial strategy. Investment in science, funding through Innovate UK, and research and development tax credits all contribute to our goal of making sure the UK remains one of the most innovative countries in the world.

[Andrew Bingham]

I thank my hon. Friend for that answer. The latest figures from the Patent Office show that my constituency has more patents awarded than any other district in the east midlands, more than Manchester, more than Cheshire East, and is in the top 8% in the country. May I ask that the measures we take, some of which he outlined, do not stop at urban boundaries and extend into rural areas, fully using the talents of people and businesses there, including the incredible level of talent that has been demonstrated in High Peak?

[Mr Hurd]

I congratulate, through my hon. Friend, the innovators in his constituency on an outstanding achievement. Let me reassure him that the Government are determined to make sure, both through the industrial strategy and tools such as the innovations audits, that we are better informed and better equipped to support innovation across the country.

[Nic Dakin (Scunthorpe) (Lab)]

The steel industry is very much an industry of the future, and innovation is part of creating that future. What are the Government doing to support research and development in the steel industry, and a metals and materials catapult?

[Mr Hurd]

I thank the hon. Gentleman for that. We had an excellent debate last week about the future for steel, and I hope I made clear to him the determination of Ministers to support the sector in moving from a story of survival to one of growth. Innovation will clearly be a very important part of that, building on the quality of British steel. As in that debate, I assure him that in the capabilities review that we are funding and accelerating, that issue will be addressed.

[Mark Pritchard (The Wrekin) (Con)]

I know that the Minister has previously flown over The Wrekin in a Squirrel—that is a helicopter—and has complimented Shropshire. May I invite him back to the Marches local enterprise partnership, which covers Shropshire and Herefordshire? What part will LEPs play in making sure that we engage and trade with Europe?

[Mr Hurd]

I thank my hon. Friend for reminding me about a helicopter trip that had slipped my memory. I am sure relevant Ministers would be happy to make the visit at his invitation. He raises a fundamental point, and on the development of the industrial strategy, the Secretary of State could not have been clearer about the importance placed on LEPs and of Ministers engaging with them to understand fully the priorities and needs in each area of the country.

[Albert Owen (Ynys Môn) (Lab)]

The Secretary of State said on “The Andrew Marr Show” that innovation in attracting foreign investment was in part about skills and training. Will there be a level playing field across the regions and the nations of the United Kingdom? Is his Department having talks with the devolved Administrations?

[Mr Hurd]

I assure the hon. Gentleman that in developing the industrial strategy, the development of skills and upgrading our skills base across the country must be fundamental to success, and we will of course maintain a high level of engagement with devolved Administrations.

[Scott Mann (North Cornwall) (Con)]

In North Cornwall, we have a company called Water Powered Technologies that builds hydroelectric pumps, which enable businesses to generate electricity through renewable means and, of course, support the local economy in Bude. Does my hon. Friend agree that the hydroelectric sector should be encouraged more and that we should go further and develop these technologies to help consumers?

[Mr Hurd]

I certainly agree with my hon. Friend that huge potential remains for the UK to generate energy from our natural resources and our water assets. The real test in the future will be how competitive those technologies are against comparable technologies. I am sure that my hon. Friend does not need any lessons from us on the need to be very cost-conscious at this moment in time.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Brexit Britain faces a choice: an industrial strategy that invests in innovation to deliver smart, sustainable and shared growth; or the slashing of wages, rights and corporate responsibilities in a race to the bottom. Sunday’s report from Sheffield Hallam University, “Jobs, Welfare and Austerity”, put the price of the last Tory Government’s disastrous de-industrialisation strategy at £20 billion a year today. Will the Minister stop prevaricating and set out how he will invest in skills, research capacity and infrastructure to stimulate innovation in our great industrial regions?

[Mr Hurd]

The hon. Lady has a distinguished record and knowledge of innovation, but I do not recognise the picture she paints. She totally ignores the job creation under the previous Government and that manufacturing productivity has grown three times faster over the past 10 years than the rest of the UK economy. She is right—I have already stated the importance of this—about placing innovation at the heart of our industrial strategy, because it is key to productivity.

[Ian C. Lucas (Wrexham) (Lab)]

4. What steps he is taking to increase the level of infrastructure investment outside the south-east.

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[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

6. What assessment he has made of the effect of the UK’s decision to leave the EU on the manufacturing sector.

[The Minister for Climate Change and Industry (Mr Nick Hurd)]

The UK is the ninth largest manufacturing nation in the world. My colleagues and I will continue to engage with UK manufacturing and other sectors to understand their priorities in shaping a successful Brexit and an industrial strategy that is effective in supporting competitiveness.

[Ms Ahmed-Sheikh]

Nissan’s special deal is, of course, good news for workers there and for that sector, but does the Minister agree that my constituents in the manufacturing sector deserve a similar deal? Will he therefore provide this House with a full list of assurances given to the company and all the details provided to those investigating the potential state aid implications of that deal, so that we can assess the implications of that work for our overall manufacturing sector?

[Mr Hurd]

We ran through this last week in the statements that the Secretary of State made. The senior Nissan Europe executive Colin Lawther was very clear that the company had received no special deal, and the Secretary of State spelled out clearly the basis of the assurances given—three were about the automotive sector and one was about Brexit and our determination to make sure that in those negotiations we do not undermine the competitiveness of key industries.

[Mr Peter Bone (Wellingborough) (Con)]

Does the Minister agree that since the referendum, manufacturing has already had a Brexit dividend as a result of the fall in the value of the pound, which makes our exports much cheaper and imports more expensive, so people who produce stuff in this country have a price advantage already?

[Mr Hurd]

My hon. Friend makes a valid point. The CBI surveys and others are encouraging, but we are determined not to be complacent. Clearly, Brexit raises a number of questions and there are a number of concerns out there in sectors across the economy. It is the responsibility of this Department to engage fully with the sectors to understand their priorities for the negotiations.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Ministers should come to the beating heart of manufacturing in this country in Huddersfield. Throughout the country manufacturers are in turmoil post-Brexit. There is no Government policy and no preparation. We are going to lose markets all over Europe and replace them with nothing.

[Mr Hurd]

That is a very defeatist statement from someone whom I associate with sunny optimism. It is a priority for the Secretary of State that Ministers get out there and engage with areas and with LEPs to understand their priorities fully. The hon. Gentleman is too defeatist about the competitiveness of British manufacturing.

[Mr Alan Mak (Havant) (Con)]

As Britain leaves the European Union, the high-value manufacturing catapult centres will play a key role in protecting innovation in the manufacturing sector. Will the Minister continue to support these centres, so that we protect our competitiveness in the future?

[Mr Hurd]

I thank my hon. Friend for highlighting the catapult centres. We are extremely proud of them and we gave a manifesto commitment to continue to support them. They play a fundamental role in our vision of an innovation-led economy.

[Ian Paisley (North Antrim) (DUP)]

UK goods and foods can compete on quality and cost with any in the world, but freight charging can remove the cost-quality advantage. Will Ministers carry out an assessment of freight charging in other countries for the export of manufactured goods and what advantage that would give to Northern Ireland and other regions?

[Mr Hurd]

The Department is and will continue to be rigorous in engaging with sectors across the economy to understand the issues of competitiveness and to understand where playing fields can be levelled, so that that can inform the negotiating strategy and the industrial strategy.

[Jack Dromey (Birmingham, Erdington) (Lab)]

An end to uncertainty for Nissan workers is deeply welcome, but there are millions of workers who want to know if they, too, have a future, and there are thousands of employers who are holding back from investment decisions, as the Engineering Employers Federation’s survey has demonstrated, until they, too, know the future. Will the Government act to end uncertainty, spelling out precisely how they will defend British manufacturing interests, otherwise it will be workers and their companies who will pay the price in Brexit Britain?

[Mr Hurd]

I thank the hon. Gentleman for that question. Of course, as a west midlands MP, he sits at the heart of a region that is being very dynamic and organised in expressing its determination to compete aggressively. Let me reassure him. I recognise the uncertainty—Brexit does create tremendous uncertainty and we need to recognise that—but it is the responsibility of the Government, and my Department in particular, to liaise closely with sectors across the economy and the regions to understand their priorities and inform the negotiating strategy.

[Nicky Morgan (Loughborough) (Con)]

7. What steps his Department is taking to encourage innovation and research in science; and if he will make a statement.

[The Minister for Climate Change and Industry (Mr Nick Hurd)]

The Government are committed to making the UK the best place for science research and innovation. To achieve that, as my right hon. Friend knows, we are investing £30 billion over the course of this Parliament. We are also strengthening our research and innovation system by creating a new body, UK Research and Innovation.

[Nicky Morgan]

I thank the Minister for that reply. In March the former Life Sciences Minister, my hon. Friend the Member for Mid Norfolk (George Freeman), visited the Charnwood campus in Loughborough, the former AstraZeneca site, and invited it to become the country’s first life sciences opportunity zone, a hub for innovation and research in science. That bid is now on the Secretary of State’s desk, and I ask him to look on it favourably.

[Mr Hurd]

I can reassure my right hon. Friend that the Government remain extremely interested in life sciences opportunity zones and that we were extremely impressed by the leadership that Charnwood campus has shown in preparing its bid, which has great potential. I am assured that my colleague, the Minister for Universities and Science, is well aware of the bid and expects to make an announcement shortly.

[Ms Angela Eagle (Wallasey) (Lab)]

So advanced is UK innovation and scientific knowledge that, prior to the referendum, this country made £3.5 billion more in grants for science and innovation than it put into EU funds. That is now all up in the air, and there is despair in some areas of UK science about the disentanglement that Brexit will cause and the threats to integrated innovation and science budgets. What can the Minister say to reassure us? What is the plan?

[Mr Hurd]

The hon. Lady makes an extremely important point about the funding for science research and innovation in this country. I think that she recognises that the science research budget has been protected in real terms, which is an extremely important commitment. We understand fully the concerns of the science community, which have been expressed to us clearly. Again, it is our responsibility to engage with those concerns and represent them. I can assure her that it is clear to us that science research and innovation is at the heart of our industrial strategy.

[David Rutley (Macclesfield) (Con)]

The Cheshire science corridor, which includes Alderley Park, the AstraZeneca site in Macclesfield and Daresbury, is strongly supported by the Cheshire and Warrington local enterprise partnership. Can my hon. Friend confirm that the Government support that key initiative and that life sciences will be a vital part of the northern powerhouse?

[Mr Hurd]

I congratulate my hon. Friend on the leadership he has shown in championing that agenda. He will know from his conversations with the former Life Sciences Minister and the current Secretary of State, who is committed to the agenda, that that remains very important to the Government.

[John Mc Nally (Falkirk) (SNP)]

8. What plans he has to make compliance with the BS EN 50291 safety standard mandatory for all carbon monoxide alarms that are placed on the market in the UK.

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[Edward Argar (Charnwood) (Con)]

15. What steps his Department is taking to ensure the increased use of clean and reliable energy sources.

[The Minister for Climate Change and Industry (Mr Nick Hurd)]

The Government are committed to upgrading our energy infrastructure to make sure it is reliable, affordable and increasingly clean. The phasing out of coal and our commitment to new nuclear and new renewables through the next round of contract for difference auctions are key milestones in the energy transition that is under way.

[Edward Argar]

Tidal power represents one of the cleanest and most reliable types of green renewable energy. I am sorry to bring the Minister back to this topic, but may I again press him, due process notwithstanding, to make his decision on the future of the Swansea Bay tidal lagoon project as swiftly as possible?

[Mr Hurd]

I congratulate my hon. Friend on his persistence in pressing this point. I have nothing to add to the bureaucratic prose that the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), has placed so elegantly on the record. We will look at the matter seriously.

[Mr Speaker]

The Chair of the Select Committee, no less: Mr Iain Wright.

[Mr Hurd]

It is good to see the hon. Gentleman back safe and sound from his visit to Sports Direct.

I refute the point that the hon. Gentleman makes; it is worth recognising that the average annual investment in renewables has more than doubled in the past five years, with an average of £9 billion invested each year in UK-based renewables. We have made extraordinary strides in building renewable capacity in this country under this Government, and we expect to announce further steps shortly.

[Steve Double (St Austell and Newquay) (Con)]

Another source of clean renewable energy is geothermal and Cornwall is the best place in the country for its development. Will the Minister meet me to discuss the Government’s support for the development of geothermal in Cornwall, and—even better—will he come and visit?

[Mr Hurd]

I know my hon. Friend to be a great champion of his area and of innovation there. Cornwall has interesting assets in relation to geothermal. I have written to him, but I can place on record here that the answer is yes.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

On clean energy, we are close to the first anniversary of the announcement by the Secretary of State’s predecessor that all unabated coal generation would close by 2025 and that a consultation on that closure would be launched in spring 2016. As we can see, it is not spring any more, and no consultation appears to be in sight. Is that because the Department is reconsidering his predecessor’s commitment, or because the Department has not got around to writing the consultation yet?

[Mr Hurd]

The hon. Gentleman will not have to wait much longer for the answer to that question. The Government are committed to the transition from coal to clean energy. In fact, he will know that this year is the first in which we will generate more electricity from renewable energy than we do from coal.

[Stuart Andrew (Pudsey) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[Caroline Lucas (Brighton, Pavilion) (Green)]

T10. Government delays mean that almost two years have passed since the last contract for difference auction in support of offshore wind. That situation is under- mining investor confidence. Will the Minister confirm that the next offshore wind auction will take place no later than January next year?

[The Minister for Climate Change and Industry (Mr Nick Hurd)]

I repeat the reassurance that I gave earlier to the shadow Minister, the hon. Member for Southampton, Test (Dr Whitehead), whom I should have welcomed to his brief. The Government remain committed to renewable energy and will be coming forward shortly with an announcement to prove that.