Oral Answers to Questions

Paul Blomfield Excerpts

Thursday 3rd June 2010 Commons Chamber

[Mr Willetts]

The Secretary of State has made it clear that he did not make those remarks. We are looking at a review that will not cut the rights of individuals, but we want a streamlined process to cut the costs of compliance for employers. We have noticed the comments that have been made by, for example, British Chambers of Commerce and the Institute of Directors, which have called for changes to the employment tribunal system so as to streamline the process. That is what we are considering.

[Paul Blomfield (Sheffield Central) (Lab)]

10. Whether he has discussed with Sheffield Forgemasters the continued availability of a loan facility from his Department; and if he will make a statement.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

At this time, I have not discussed with Sheffield Forgemasters the continuing availability of the loan facility but, as the then Chief Secretary’s statement on 17 May made clear, all projects that were approved after 1 January 2010, including this one, are undergoing a process of review. An announcement will be made in due course as part of the review.

[Paul Blomfield]

I thank the Secretary of State for his answer, but will he acknowledge that the loan was crucial in levering in significant private sector investment to enable the acquisition of the largest forging press outside Japan and Korea? Over three years, the loan was subject to rigorous review by the shareholder executive and a value-for-money exercise, and this further review is causing unnecessary uncertainty. Will he therefore urgently get rid of that uncertainty, give Forgemasters the confidence to move forward and confirm the loan?

[Vince Cable]

I understand the importance of that project to the hon. Gentleman’s constituency and to Sheffield, but he needs to understand that we inherited a very large number of projects that were agreed in a hurry in the run-up to the general election. I do not want to speculate about the motives, but we inherited a lot of projects that were of variable quality. We now have to judge those projects, including this one, according to the criteria of value for money and affordability.