Oral Answers to Questions

Norman Lamb Excerpts

Thursday 24th May 2012 Commons Chamber

[Harriett Baldwin (West Worcestershire) (Con)]

4. What recent progress he has made on securing the future of the Post Office network.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Norman Lamb)]

Significant progress has been made on securing the future of the post office network. In particular, Post Office Ltd has become an independent company, with its own strengthened board; signed a long-term agreement with Royal Mail, cementing their commercial relationship for the next 10 years; won new contracts from central and local government; and achieved greater network stability, with net closures of just two post offices in the year to March 2012, which is the lowest figure for 25 years.

[Harriett Baldwin]

Will the Minister congratulate villagers from Alfrick in my constituency, who have raised £60,000 in a community share offering and found 60 volunteers to reopen the community post office? However, does he agree that asking each of those 60 pillars of their community to go through a Criminal Records Bureau check is a little excessive?

[Norman Lamb]

I absolutely congratulate the villagers who have managed to achieve that. I have seen a similar story in Norfolk, and it is a fantastic community spirit that manages to achieve that. I tend to agree that asking every volunteer in the village to undergo a CRB check seems over the top.

[Mr Mike Weir (Angus) (SNP)]

I welcome what the Minister says, but does he not share my concern that there are still problems when main post offices are moved into other businesses? A constituent of mine went to the main post office in Arbroath, by far the largest town in my constituency, to renew his photographic driving licence, only to be told that it could no longer provide that service and that he would have to go to Dundee. Does the Minister not accept that such incidents undermine efforts to stabilise the post office network?

[Norman Lamb]

I hear the hon. Gentleman’s point, but the transformation being undertaken through pilots in both main and local post offices has been received incredibly positively by customers, with 90% satisfaction rates, and by the sub-postmasters and postmistresses who are delivering those services.

[Ann McKechin (Glasgow North) (Lab)]

Does the Minister share my concerns about the lack of vetting of staff who will be operating the new Post Office Local network and that that will result in a reduction in the level of assurance that customers can expect?

[Norman Lamb]

I do not think that that concern is fair. The response from customers has been incredibly positive. More than 200 Post Office Locals have been piloted so far and the response we are getting is very positive. If we can make post office services more accessible, particularly by extending opening hours, increases in the number of sales can be achieved. There has been an increase of 9% in sales and in the number of customers coming into the post offices, so that is a real success story.

[Andrew Stephenson (Pendle) (Con)]

5. What recent progress he has made on the recruitment of business mentors.

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[Nicholas Soames (Mid Sussex) (Con)]

12. What steps he is taking to promote exports to the far east; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Norman Lamb)]

Through UK Trade & Investment, we are promoting exports to Asia and to the far east by campaigning for better market access and by improving market conditions for UK businesses. For example, we are lobbying for the start of formal free trade agreement negotiations between the European Union and Japan, and for the successful conclusion of an ambitious EU-Singapore free trade agreement this year. We also provide targeted support services for UK businesses.

[Nicholas Soames]

Will the Minister join me in welcoming the exceptional work of the Prime Minister, the Trade and Investment Minister, the Foreign Secretary and all those other Ministers who are doing a great deal to promote British trade to the far east? Does the Minister agree that it will do our cause no good if senior business men in the far east, wanting to come here and take part in business exchanges, find it difficult to get a visa to do so? May I urge him to take every step to resolve that question?

[Norman Lamb]

I absolutely share my right hon. Friend’s comments about the incredibly valuable work undertaken by the Prime Minister, the Deputy Prime Minister and the Secretary of State for Business, Innovation and Skills. During the Prime Minister’s recent visit, deals worth £546 million were secured from south-east Asia, but I understand the concern that my right hon. Friend the Member for Mid Sussex (Nicholas Soames) raises about visas, and I will certainly look into them.

[Mr Denis MacShane (Rotherham) (Lab)]

Has the Minister read last week’s pamphlet, by one of the most brilliant and prescient Members among us, which states:

“It is noteworthy that other developed countries have re-oriented their export profiles more effectively than Britain has done, raising doubts about whether we are keeping pace with our EU partners in promoting British commercial interests in the emerging economies”?

That sentence was written by the hon. Member for Orpington (Joseph Johnson), who is sitting behind the Minister. Could they swap jobs, so that we have a trade Minister who knows what to do?

[Norman Lamb]

I will ignore that abuse.

[Mr Willetts]

Hear, hear. Rise above it.

[Norman Lamb]

I will rise above it, absolutely.

Exports to the far east are growing very significantly. UK exports to China have grown by 15% over the past year, for example, and we are working hard to secure a free trade agreement with Japan, which would deliver significant benefits to the UK.

[Mr Speaker]

Iain McKenzie. Not here.

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[David Mowat (Warrington South) (Con)]

16. What discussions he has had with the Secretary of State for Energy and Climate Change on the potential effect on process manufacturing of the Government’s policy on energy pricing.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Norman Lamb)]

The Secretary of State regularly meets the Secretary of State for Energy and Climate Change to discuss energy and climate change policies, including their impact on manufacturing. We are committed to ensuring that manufacturing remains competitive, and in the autumn statement we announced a package worth £250 million to reduce the impact of policies affecting the cost of electricity for electricity-intensive industries most at risk of carbon leakage.

[David Mowat]

In January, the Department of Energy and Climate Change published figures showing that 18% of electricity costs for business go towards supporting the renewables industry. Last week, in the Financial Times, the chief executive officer of Solvay said that high energy prices are a bigger issue for his business in the UK than the eurozone crisis. What assurance can the Minister give us that as we decarbonise, we do it as cheaply as possible to ensure that we minimise value destruction and the number of jobs lost?

[Norman Lamb]

I give the hon. Gentleman that absolute reassurance. In terms of global carbon emissions, it makes no sense for a business to relocate to another country, so we will do everything we can to ensure that businesses remain competitive.

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[Peter Aldous (Waveney) (Con)]

T6. Last week, UK Trade & Investment put on an extremely useful event for businesses in my constituency and that of my hon. Friend the Member for Suffolk Coastal (Dr Coffey). Subsequently, my constituent, Simon Chater, has expressed concern about the cost to small and medium-sized enterprises of using the overseas market introduction service. Will the Minister confirm that UKTI is doing all it can to support SMEs that are seeking to export, including working with other Departments to identify new markets?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Norman Lamb)]

I was delighted to hear about the event in my hon. Friend’s constituency. I pay tribute to my hon. Friend the Member for Stourbridge (Margot James), who has made arrangements with 70 MPs to hold similar events around the country. We have to do a lot to encourage SMEs to export. The level of exports from our SMEs is below the European average, so we need to tackle that. Many UKTI services, including its initial consultations, are free. It has a particular focus on helping SMEs to increase their exports.

[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

T2. The Government have recently designated Tyneside a centre for offshore renewable energy. In welcoming that designation, I ask the Minister to set out the economic development advantages of such a designation. What assistance can the initiative expect from UKTI, which operates under BIS? Will Ministers urge senior officials to visit Tyneside, and to promote this Government initiative at home and abroad?

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[Jessica Morden (Newport East) (Lab)]

T3. It is six years this year since the collapse of Farepak. The victims have still not received any of their money back, even though the administrators’ costs to wind up the company far outstripped the minimal compensation that they will eventually receive. Does the Minister understand just how frustrated Farepak customers and agents are, and does he have any positive progress to report?

[Norman Lamb]

This whole saga has been a nightmare for those affected by it, and I have enormous sympathy with them for the plight that they have suffered, which has dragged on for so long. The hon. Lady and I have had one attempt to meet, and I am happy to meet her and work with her to assist those who have been affected.

[Adam Afriyie (Windsor) (Con)]

When it comes to growth in small businesses, I commend the Minister for Universities and Science for the energy and intelligence with which he has enacted high-tech policies for high-growth industries. However, we must be careful not to pick individual winners within those sectors. Does he agree that backing Britain’s successful high-tech sectors is the key to releasing economic growth and securing the jobs and competitive international advantage that we should enjoy?

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[Heidi Alexander (Lewisham East) (Lab)]

T4. I am an avid viewer of “The Apprentice”, and I enjoy trying to work out who is next in Lord Sugar’s firing line. As television it is brilliant, but it is far removed from the real world of people trying to find work, stay in work and prosper in it. Can a Minister explain to me how making it easier to sack people will create the jobs that my constituents in Lewisham so desperately need?

[Norman Lamb]

The clear message that should go out is that the best way to get the best out of employees is to recruit well and invest in staff, and in that way to maximise productivity. I remain far from convinced that taking protection away from 25 million employees in the UK would do much for confidence in this country.

[Robert Halfon (Harlow) (Con)]

Is the Minister aware that Harlow has the highest business growth in the United Kingdom and a new enterprise zone that will open next year and create 5,000 new jobs? Will the Minister of State, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), who is responsible for cities, visit Harlow, even though it is a town, and see what more we can do for jobs and growth?

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[Mr Jim Cunningham (Coventry South) (Lab)]

T8. Can the Government clear up the confusion on their own Benches? What part of the Beecroft report do the Government accept, and what part do they reject?

[Norman Lamb]

The Government are implementing many elements of the Beecroft report. In fact, Adrian Beecroft has already had discussions with officials in my Department and his report includes a lot of measures that the Department was already considering implementing. A call for evidence is out on no-fault dismissal, and it is right to examine the international evidence. We will report after that evidence has been collated.

[Julian Smith (Skipton and Ripon) (Con)]

May I urge Ministers to ignore the canned melodrama of the shadow Business, Innovation and Skills Secretary on the Beecroft report? Will the Minister confirm that the current call for evidence from very small businesses in Britain will be objective?

[Norman Lamb]

I can absolutely confirm that. It is always right to base policy on evidence—[Laughter.]

[Mr Speaker]

Order. The Minister is seeking to respond in a very professional way. Whether Members agree with him or not, they ought to hear him.

[Norman Lamb]

I am very grateful, Mr Speaker.

It is interesting to note that the evidence gathered from Germany suggests that there was very little change to the level of employment in small businesses after the reforms.

[Kelvin Hopkins (Luton North) (Lab)]

The Million+ group of universities has concluded that the new fees regime to be imposed on mature students will deter many thousands of them from going to university. That will damage their life chances, and it could damage the universities, but it will also restrict the talent available in our economy. Will the Government think again about fees for mature students?

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[Mark Durkan (Foyle) (SDLP)]

Do the Government accept the evidence from R3 that businesses in administration find it expensive or impossible to trade because of the ransom tactics of suppliers, particularly on-suppliers. Will they address the shortcomings in the Insolvency Act 1986, which fails to provide firms with the protections they would have under chapter 11 in the United States?

[Norman Lamb]

I will look into the issue the hon. Gentleman raises and will be happy to discuss it with him.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

I am sure all hon. Members welcome the publication of the Enterprise and Regulatory Reform Bill, which sets out some great initiatives, including the green investment bank and the fight against red tape. Will the Minister work with local government to ensure that it applies regulations judiciously as opposed to ferociously?

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[Chris Bryant (Rhondda) (Lab)]

May we have an answer to the question from my hon. Friend the Member for Lewisham East (Heidi Alexander) from a Conservative Minister? Why is it easier to hire people if it is easier to fire them?

[Norman Lamb]

It is important that we have a business environment in this country that attracts inward investment. However, interestingly, surveys show that employment protection is not one of the barriers that those seeking to invest in the UK see.

[Sheila Gilmore (Edinburgh East) (Lab)]

From today’s answers about regulation, it appears that, in the Government’s eyes, progress has already been made. Why, then, has growth slowed so far that we are now back in recession? Does that not show that all this deregulation is not working and that we need measures to increase demand?