Economic Justice Commission

Philip Hollobone Excerpts

Tuesday 11th September 2018 Westminster Hall

[Several hon. Members rose—]

[Mr Philip Hollobone (in the Chair)]

Order. The debate can last until 5.30 pm. I am obliged to call the first of the Front-Bench spokespersons no later than seven minutes past 5. The guideline limits are five minutes for the Scottish National party, five minutes for Her Majesty’s Opposition and 10 minutes for the Minister. If the Minister would be kind enough to leave three minutes at the end, Mr Byrne may sum up the debate. Two Members are seeking to contribute and we have 20 minutes, so they may each speak for up to 10 minutes.

--- Later in debate ---

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

It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) for securing the debate, for his excellent work as chair of the all-party parliamentary group on inclusive growth, and for starting the debate with such a passionate and comprehensive call for a change to the economy.

I also thank the IPPR for bringing together such an amazing group of commissioners—Justin Welby, Mariana Mazzucato, Frances O’Grady and Lord Kerslake, to name but a few—to carry out such a far-reaching investigation into economic justice and to reach such radical and, at the same time, common-sense conclusions, as we have heard. That is such a contrast with the “same old, same old,” right-wing, neo-liberal policies of this Government and their Tory-led predecessors.

The British people are sick and tired of being told over and over again—largely by the same smug and privileged voices—that there is no alternative to the economy-wrecking, service-slashing, opportunity-destroying, soul-sapping austerity agenda. The Brexit vote and Labour’s surge in the polls in last year’s election were both, in different ways, products of the paucity of economic justice under the current regime.

As my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) emphasised, we need to address the challenges of Brexit, but also the causes of Brexit. We are experiencing the longest period of stagnant wages for 150 years, with 6% of the workforce on short-term contracts and 3% on zero-hours contracts. UK productivity is 13% lower than the G7 average and we are, as we have heard, the most regionally imbalanced economy in Europe.

My hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) highlighted the plight of retail workers, but we see those kinds of conditions in other sectors across our economy. The commission’s assessment of those problems and of the need for the fundamental reform of the British economy matches the principles of Labour’s transformative economic programme. Indeed, many of the report’s recommendations are already Labour policy: a national investment bank with a regional network, compulsory diversity reporting for companies and a mission-oriented industrial strategy, as championed by leading economist and commissioner Mariana Mazzucato. Other recommendations we will look at closely as we prepare our programme for Government.

Having written before on the need for radical action to tackle our productivity crisis, I was struck by the commissioners’ detailed proposals here; their suggestions on data are a welcome attempt to take seriously the power of this new property that drives the new economy. We have heard that strengthening union participation, as recommended in the report, is good not only for workers but for companies, the economy and, ultimately, the country. On that, as well as a number of other areas, the commission has produced thoughtful and practical recommendations, in stark contrast to the total lack of action on the Government’s part. I hope that the Government will take the recommendations seriously. I welcome the Minister to her role and ask her to commit to publishing a full response to the commission’s report.

Two years ago, the Prime Minister stood on the steps of Downing Street and talked about building

“a country that works for everyone”,

but in reality she has clung to the discredited zombie economics of Mr Osborne. The relentlessly negative and unimaginative election campaign waged by the Conservatives last year was proof of that. Meanwhile, Labour offered a serious critique of our economic model, with positive and practical measures to build a high-wage, high-skilled, high- productivity Britain. It is no coincidence that the publication of our manifesto saw our party soar 20 points in the polls, while Tory support fell dramatically once people saw what thin gruel they were being offered.

I welcome this report as an important intervention in the economic debate that Labour ignited last year. It is a debate in which this Government have no meaningful voice or even ideas; but perhaps that is about to change. Perhaps the Minister will now pledge to give this report the attention it so richly deserves. If not, she should step aside and allow us to do so.

[Mr Philip Hollobone (in the Chair)]

If the Minister would be kind enough to finish her remarks no later than 5.27 pm, that will give Mr Byrne time to sum up the debate.

Brexit, Science and Innovation

Philip Hollobone Excerpts

Thursday 6th September 2018 Commons Chamber

[Norman Lamb (North Norfolk) (LD)]

I beg to move,

That this House takes note of the Science and Technology Committee’s Second Report on Brexit, science and innovation, HC 705, and the Government Response, Fifth Special Report, HC 1008; further takes note of the Science and Technology Committee’s Eighth Report on An immigration system that works for science and innovation, HC 1061; believes that the Government should seek to agree with the EU the far-reaching science and innovation accord proposed by the Prime Minister in her Mansion House speech and in The Future Relationship Between the United Kingdom and the European Union White Paper, Cm 9593; calls for this accord to be negotiated separately from wider EU-UK trade negotiations; and further calls for the science and innovation accord to include details of an immigration system that works for the science and innovation community.

It’s me again, I’m afraid. The motion relates to two recent reports from the Science and Technology Committee, and I again thank the members of the Committee for their work on the inquiries. I also thank the Liaison Committee for recommending to the Backbench Business Committee that the House should have the opportunity to hold this debate today. The House has spent many hours discussing the implications of leaving the European Union for the big political issues, such as trade, regulation and freedom of movement, often in ways that are deeply divisive between those who support remaining in the EU and those who believe we should be leaving, which was the decision in the referendum. Today, however, we have an opportunity to explore the effects of Brexit on something which, at least in theory, is less politically contentious for many but just as important to get right.

No one is rushing to the barricades to demand the end to scientific collaboration, about which we should all be able to agree. I am sure that Members across the House will want to join me in underlining the absolute importance of science and innovation to the economy, but I hope that today will also help to generate some political momentum to make it certain that science does not become a casualty of the Brexit process, particularly given the concerns that no deal could emerge from the negotiations.

[Mr Philip Hollobone (Kettering) (Con)]

I welcome the right hon. Gentleman’s introductory remarks. Despite our views on Brexit, I am sure that we are on the same page. Does he agree that this country has led the world in many scientific discoveries for hundreds of years and that there has been close collaboration on such discoveries across Europe for hundreds of years? Scientific collaboration did not start on 1 January 1973 and will not end on 29 March next year. Can we agree on that?

[Norman Lamb]

I thank the hon. Gentleman. In a sense, these reports are all about seeking to ensure that collaboration does continue beyond March next year, and I of course completely accept that fact about collaboration, not just across Europe, but across the world.

My Committee has produced two reports this year looking at the impact of Brexit on science and innovation. They build on work undertaken by my two predecessor Committee Chairs and their Committees in the 2015 Parliament. One of those Chairs was the hon. Member for South Basildon and East Thurrock (Stephen Metcalfe), who continues to be a member of the Science and Technology Committee. I pay tribute to him for his work and note that he is in his seat for this debate. The first of this year’s two reports, as referenced on the Order Paper, was published in March following a summit with more than 50 representatives of the science and innovation community. We are grateful for the community’s willingness both to respond quickly to our call for evidence and to participate in that event.

The report recognises the current strength of British science on the world stage and the Government’s commitment to science and research through a range of policies. For instance, the Government have made science a key pillar of the industrial strategy, and they have also committed to increase R&D spending further to the OECD average of 2.4% of GDP by 2027.

Those commitments are very welcome, but the shadow of whether the UK will participate in all aspects of EU schemes such as Horizon 2020 and its successor programme after March 2019 looms large. Whatever form of Brexit we end up with, there is a need to make sure that the international standing of UK research is protected, and indeed strengthened, following March next year.

A key recommendation of our report is that the Government should explicitly commit to seeking associated country status for Horizon 2020’s successor programme, now known as Horizon Europe. The UK has received €4.73 billion from Horizon 2020 to date, and Horizon Europe is set to be a huge increase in ambition, and the pot of money available will total €100 billion from 2021 to 2027.

Since our report, the Government’s no deal technical note on Horizon 2020 funding has underlined the importance of such close association. The note confirms that, without a deal that secures associated country status, we will not be eligible to participate in some very important elements of Horizon 2020 during its remaining years, including European Research Council funds. The campaign group Scientists for EU has calculated that we stand to lose around £0.5 billion each year in the event of no deal by not being eligible to access those funds, although it is important to say that presumably we would not be paying in during that period either.

The plans for Horizon Europe set out an enhanced role for third countries—in other words, countries outside the EU—in the new scheme when Horizon 2020 has run its course. The Government have played their part in shaping the programme for Horizon Europe, but the Minister has said that participation is contingent on three things.

First, it is contingent on the programme’s continued focus on excellence. I think we have reassurance, but it would be helpful if the Minister updated us. Secondly, it is contingent on agreeing a suitable participation fee. The Minister has said that he supports participation but “not at any price”. Thirdly, it is contingent on securing a suitable level of influence on the programme.

The last point remains a challenging issue. We are likely to be one of the biggest contributors to the programme if we do participate, but the proposed rules for Horizon Europe prevent third countries from having “decisional powers” over the programme. In financial terms, it appears that we will not be allowed to get more out than we put in, as we have been able to do in the past.

The Minister will need to be able to sell the idea of participation to the Treasury, which on the face of it is made more challenging by there being no voting rights, according to the EU’s current position. On the other hand, formal voting is rarely, if ever, necessary, and there may be other ways in which the UK could have influence over the programme if the EU will not shift on formal voting rights. Either way, the science community takes the view that striking an agreement is vital, as this international funding programme is so important and so highly regarded.

Incidentally, I also urge the EU negotiators to demonstrate some flexibility, because if the UK is to be one of the largest contributors to the programme, it does not seem unreasonable that we should be given decision-making powers as a third country.

Construction Sector Deal

Philip Hollobone Excerpts

Thursday 5th July 2018 Commons Chamber

[Richard Harrington]

Absolutely; I can reassure my hon. Friend on that point.

[Mr Philip Hollobone (Kettering) (Con)]

What is there in the construction sector deal to encourage small builders in Kettering?

[Richard Harrington]

My hon. Friend, as always, speaks up for Kettering, and he does so well. Kettering is typical of many places in the country where small businesses are the core of the construction industry. The sector deal is not silent about that. [Interruption.] The shadow Minister is chuntering that he made that point—he did, and he is absolutely right.

Small businesses are the core of the construction industry. On every visit I have made to the tier 1 large contractors, they have been very conscious that small businesses are part of the industry. We have to make sure that those small businesses get their share of the expenditure on apprenticeships, as they are getting, and make it easier for them to get apprentices, which we are doing. The training board and the industry bodies we work with are conscious of that.

Nuclear Sector Deal

Philip Hollobone Excerpts

Thursday 28th June 2018 Commons Chamber

[Mr Gyimah]

As part of our industrial strategy, we committed ourselves to a series of sector deals. So far, five have been announced, including the life sciences deal, the automotive sector deal, the artificial intelligence deal, and the nuclear sector deal announced today. We are looking for opportunities across the board, and if there is an opportunity for us to develop a sector deal working with industry, we are willing to proceed. As the hon. Lady knows, clean growth is one of the four grand challenges in the industrial strategy, and we will make sure that we do everything we need to do to make a success of it.

[Mr Philip Hollobone (Kettering) (Con)]

The Minister has confirmed that the new nuclear sector deal plans to reduce the costs both of new-build nuclear projects and of decommissioning old nuclear sites. By how much and by when?

[Mr Gyimah]

We can always on my hon. Friend for a very precise question. We expect, by 2030, a 30% reduction in the cost of new-build projects. We also want, by 2030, to improve diversity across the sector by achieving 40% female participation, as I mentioned. Again by 2030, we expect to achieve savings of 20% in the cost of decommissioning.

Energy Policy

Philip Hollobone Excerpts

Monday 25th June 2018 Commons Chamber

[Greg Clark]

Part of the energy assessment that has been made is what would be the best way to secure our energy supplies of the future competitively and so that costs for taxpayers and bill payers are minimised. As I made clear in my statement, I added to that assessment considerations of the local impact and the prospects. I could not have gone further in embracing all the different aspects, and I hope that the hon. Gentleman will reflect that that was the right thing to do.

[Mr Philip Hollobone (Kettering) (Con)]

It is clear from what the Business Secretary said that this was not even a marginal decision that could have gone either way, and that by a country mile the Government have decided that this scheme is simply not financially viable. What I do not understand is why there is such a big gap in the Business Secretary’s analysis and that of Tidal Lagoon Power Ltd. What is his assessment of why that gap is so wide?

[Greg Clark]

With any proposal, it is important to do due diligence and check the basis of the calculations, and in this case, in so doing, as my hon. Friend stated, we found the gap to be so wide that the proposal could not be responsibly backed. As I have said to hon. Members, however, any proposal that is competitive will be welcomed.

Leaving the EU: Airbus Risk Assessment

Philip Hollobone Excerpts

Monday 25th June 2018 Commons Chamber

[Greg Clark]

For all of us, it is “jobs” that we want to secure from our negotiations—good jobs—and we are determined to do so.

[Mr Philip Hollobone (Kettering) (Con)]

Is it not the case that the United Kingdom has attracted more foreign direct investment than most, if not all, our European partners, and is it not the case that today, two years on from the referendum, there is more foreign direct investment in our economy than there was in 2016?

[Greg Clark]

My hon. Friend is absolutely right. He will know that I spend time travelling around the world to encourage overseas investors to invest in our country and our economy. One of the reasons why they choose to do so is that we are a place of skills and ingenuity. We are also a place from which it is possible to export around the world, and we want to be able to maintain that. That is my purpose.

Rolls-Royce Redundancies

Philip Hollobone Excerpts

Thursday 14th June 2018 Commons Chamber

[Greg Clark]

I have extensive consultations with all players in the industry. I listen to them, and make clear in our discussions in government and in our negotiations that what they require in precision terms to be able to operate the efficient system that they do at the moment must continue. As the hon. Gentleman says, this is a jewel in the crown of British industry. It is an industry where demand is expanding around the world. We have a wonderful opportunity to continue that success, and it is vital that we should be able to continue to trade with our European partners without any interruption to that.

[Mr Philip Hollobone (Kettering) (Con)]

Normally when the House is told of big job losses at a company it is because that business is in financial trouble, but Rolls-Royce is profitable and has a growing order book. It would seem that it is making these job losses in order to become more efficient. It would also seem from what the Secretary of State is saying that a lot of those who are, sadly, going to lose their jobs have very highly transferable skills. Will he ensure that the local enterprise partnership and neighbouring LEPs have the resources they need to place those highly skilled people in alternative employment?

Oral Answers to Questions

Philip Hollobone Excerpts

Tuesday 12th June 2018 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

2. What estimate he has made of the amount of electricity (a) generated and (b) consumed annually in the borough of Kettering.

[The Minister for Energy and Clean Growth (Claire Perry)]

The last time I talked about dilation, I was in labour. However, in Kettering—

[Claire Perry]

In 2016, at least 150 GWh were generated in Kettering, mostly from renewables; this is enough generation to power 38,000 homes. In 2016, 405 GWh of electricity were consumed in the Kettering local authority area.

[Mr Hollobone]

It is great news that Kettering is one of the greenest boroughs in the country, but we do have a very large number of wind turbines in the borough. What are the Government doing to encourage offshore wind turbines, rather than onshore ones?

[Claire Perry]

We have maintained, and will continue to maintain, our manifesto commitment that says that no more large-scale onshore wind development is right in England. That should reassure my hon. Friend and his constituents.

Marks & Spencer

Philip Hollobone Excerpts

Thursday 24th May 2018 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

Kettering’s Marks & Spencer shop is one of the 14 whose closure has been announced, and this is very bad news for local shoppers in Kettering who use the store and in particular for the 58 employees. The decision is even more bemusing given that Kettering sits in one of the fastest growing areas in the UK, with new houses going up all the time and the population increasing at a rapid rate. Will the Minister ensure that large retailers like Marks & Spencer are fully apprised of housing growth plans, because they might be making their decisions on incorrect information?

[Claire Perry]

My hon. Friend makes an important point and I will certainly make sure the Department ensures those pieces of information are shared, and of course a consultation is now under way—that was announced yesterday—with the stores affected and there might be new pieces of information that have not been thought about that should be used.

Sainsbury and Asda Merger

Philip Hollobone Excerpts

Monday 30th April 2018 Commons Chamber

[Andrew Griffiths]

I understand the hon. Gentleman’s points, which is why one of the first things I did after being made Minister was to pick up the phone to the union representatives he talks about. We want to make sure that employees’ voices are heard and that there is proper engagement over the merger. It is clear, though, that in no way is this a response to Brexit. These are businesses based in the UK and competing in the UK, and the business will continue to be listed on the London stock exchange post the merger. I recognise the hon. Gentleman’s concerns, which he raises on behalf of his constituents, but perhaps we should stop playing politics with Brexit.

[Mr Philip Hollobone (Kettering) (Con)]

The town of Kettering has a large Sainsbury’s and a large Asda. If this merger goes through, what Kettering shoppers and supermarket employees want to know is: will we still have both stores in two years?