Oral Answers to Questions

Debate between Rachel Maclean and Greg Clark

Tuesday 20th November 2018 Commons Chamber

[Greg Clark]

I do indeed, and I congratulate Ideal Foods and the Cornish Cheese Company. Perhaps I can add one of my own: Cornish Charcuterie, based just outside Bude, is one of my favourites, and I know that it has many satisfied customers across the UK and Europe, and increasingly around the world. This shows that, of all the manifold assets that Cornwall has, its food and indeed its drink are something to boast about.

[Rachel Maclean]

More than 355 new businesses have been started up in my constituency since 2010. Many of them are microbusinesses with only one or two employees, and their needs are very different from those of the larger small and medium-sized businesses. What additional support can the Department give to those microbusinesses to help them to thrive?

[Greg Clark]

My hon. Friend is absolutely right to suggest that microbusinesses, and indeed start-ups, sometimes face challenges in accessing finance. The British Business Bank has a programme to focus on microbusinesses. Start-up loans, from which 44 businesses in her constituency have benefited, are also important.

Nuclear Power: Toshiba

Debate between Rachel Maclean and Greg Clark

Monday 12th November 2018 Commons Chamber

[Greg Clark]

The right hon. Gentleman is correct in noting that the scale of such projects means the companies proposing them need to have a plan that is financeable and, in this case, a source of technology that is available. I repeat what I said at the beginning, which is that the Westinghouse subsidiary of Toshiba went into chapter 11 bankruptcy. On the tidal lagoon project, I am in favour of diverse sources of energy—that is clear—but we have to recognise value for money for taxpayers and consumers. The Swansea tidal lagoon proposal was so far off being able to be financed that it was not value for money for either the taxpayer or bill payers.

[Rachel Maclean (Redditch) (Con)]

Does my right hon. Friend agree that smaller nuclear reactors can be an innovative heart of the mix to provide the country’s future energy needs?

[Greg Clark]

I do indeed. The sector deal to which I referred emphasises the role that small modular reactors can play, including on some sites of decommissioned nuclear power stations. That is an important area for the future.

Rolls-Royce Redundancies

Debate between Rachel Maclean and Greg Clark

Thursday 14th June 2018 Commons Chamber

[Greg Clark]

I understand why a Member with a strong constituency interest in the workforce there would be anxious and combative in defending their interests. I will ensure, as will the trade unions, that the interests of the workforce are strongly represented. It is not true that all the redundancies will be at Derby, although the hon. Gentleman is right to say that a proportion of them will be. It is important that the company should adhere to its agreement with the trade unions, and I will of course make sure that it does that. In terms of the hon. Gentleman’s overall statement about the efficiency of companies, I think he should just reflect that his desire to overthrow capitalism would make it very hard for anyone to find work in any private company at any time.

[Rachel Maclean (Redditch) (Con)]

Does my right hon. Friend agree that the aerospace industry has gone from strength to strength under successive Conservative Governments? Looking more closely at Redditch, many of my constituents work for another engineering giant, GKN, and they want to know what the Government are doing through the industrial strategy to support and encourage the skills for the next generation of young people in engineering subjects, so that these companies can flourish in the future. Will he update the House on those plans?

[Greg Clark]

My hon. Friend is absolutely right to say that aerospace is one of the sectors in which our already strong reputation is growing. Through the industrial strategy, we are making a big investment in research and development and also in training, including retraining, so that an expanding industry can have access to the skills that it needs in the future. This will benefit her constituents and those of many others around the country.

Retail Sector

Debate between Rachel Maclean and Greg Clark

Wednesday 6th June 2018 Commons Chamber

[Greg Clark]

I was not aware of that, and my colleagues and I would be happy to meet the hon. Lady to discuss her example.

It is not the case that in recent years we have experienced a collapse in employment—rather the reverse. The trend has been towards increasing and, more recently, more stable employment. We are seeing more full-time work, rather than part-time work, in the mix. Nor is it the case that more retailers are failing. The hon. Member for Salford and Eccles correctly mentioned some recent examples of retailers that have gone out of business, but it has always been the case that some retailers have failed and been replaced by others.

[Rachel Maclean]

Of course I regret that Marks & Spencer is pulling out of Redditch, but is it not the case that the consumer is the ultimate beneficiary when we see change in the sector? Consumers get new products, better prices and different things and new experiences they would not necessarily have had previously. That is what an entrepreneurial economy supported by this Government does.

[Greg Clark]

I agree. We want to make sure that our retail sector is dynamic and provides value and choice for consumers, as well as good career opportunities for members of staff.

GKN

Debate between Rachel Maclean and Greg Clark

Tuesday 24th April 2018 Commons Chamber

[Greg Clark]

The right hon. Gentleman was not persuaded either. He commissioned a report, he had a respected and eminent individual look into this, and he gave evidence to the Select Committee to say that he was not persuaded. I have described some of the circumstances involved. Those who bought shares in the latter stages bought them from people who had decided they did not want to back the existing management. He knows that I take a great interest in ensuring that our regime of corporate governance is the best in the world. The fact that people can invest here with confidence forms an important part of our reputation. We have been successful over many years, and of course if the Select Committee wants to review the experience since the report that he commissioned, it has the ability to do that and I would be very happy to participate.

[Rachel Maclean (Redditch) (Con)]

The Minister will be aware that the global headquarters of GKN are in Redditch, and that this has been my first priority ever since we heard the news of the takeover. Is he also aware that I spoke to Melrose on Friday, and that it assured me that it has no plans to shut the Redditch office? It believes that many of the jobs will be reabsorbed into the functions of GKN. Does he agree that that is really good news, and contrary to some of the things we have heard in the media? Will he also comment on observations in the media about the Airbus relationship? Again, we have heard that the takeover could have a negative impact in that regard, but that is not what I have heard from Melrose, which thinks that the relationship could continue. Can he comment on that further?

[Greg Clark]

I congratulate and applaud my hon. Friend on being active and engaging with the new management to talk about the important headquarters function in her constituency. She has indeed secured good news from the company in that respect. I understand that the divisional heads of the aerospace and automotive businesses have been reappointed by the new management. Let us bear in mind that the incumbent management’s proposal was, latterly, that the automotive business should be sold, and that it would now be in the process of being sold. Airbus is clearly an important company, and there were some comments ascribed to it, although I do not think that they have been repeated. It will be important for the new management to set out its plans, so that all suppliers can have confidence in those relationships.

GKN: Proposed Takeover by Melrose

Debate between Rachel Maclean and Greg Clark

Tuesday 27th March 2018 Commons Chamber

[Greg Clark]

Everyone in this House, on both sides of the Chamber, agrees that GKN is a very important company that is crucial to vital R&D work and employs thousands of people across the country. That is why I consider it important, over and above my statutory powers—I have explained very clearly that this is without prejudice to the use of those powers—to encourage the bidder to set out much more clearly than it has done so far its intentions on many of the matters that the hon. Lady mentioned, such as research and development, being based in the UK, and a commitment to the length of tenure of this very important aerospace business. That seems to be an appropriate action at this stage in the proceedings.

Of course, this is a contrast to the sorry situation that arose—there are Members in this Chamber who will remember this—during the time in which the hon. Lady’s party was in government, when Cadbury was sold to Kraft and a plant that was expected to be kept open was closed forever. In response to that, when we came into government a regime was established that allowed legally binding undertakings to be given. I have said repeatedly in this House and to hon. Members that, given that that regime exists, I expect it to be used. I was not satisfied with the degree of commitments that had been given so far by Melrose, so I think that it was the right step, over and above my statutory powers, to set out those concerns in writing and to invite Melrose to respond to them.

The hon. Lady knows very well the statutory powers that I have. Again, they were passed when her party was in government, under the Enterprise Act 2002. The question of national security is a quasi-judicial one that will be addressed separately. It is not a subjective decision that I can take. It has to be based on a clear assessment. I make the commitment that I will take that assessment meticulously. There is a closing window for this bid, and it is right to use that window to obtain statements as to Melrose’s intentions.

The hon. Lady asked questions about the enforceability of the commitments. Melrose has said in its response that it is in discussion with the takeover panel. I regard that as the best way to lodge the commitments, so that they are enforceable with severe penalties, including contempt of court, if they are broken. The takeover panel monitors the adherence to the commitments after the event, were the bid to be successful. On security, the hon. Lady also asked about the company’s conversations with the US Administration. It is the case that the company took a decision to waive that condition.

The hon. Lady asked a question about commitment to the workforce. I have met the trade unions twice now. I specified in my letter to Melrose that I expected it to make a commitment to deal fairly with the trade unions in order to ensure that the future of the workforce is taken seriously, in lockstep with the trade unions. That is important. She also made a point about the avoidance of stamp duty. Clearly, any taxes that fall due ought to be paid.

I hope that the hon. Lady and the House—whatever their assessment of the bid—would, in recognition of the powers available, think that it is the right step to approach the bidder at this stage, before the timetable closes, in order to set out in a way that can be enforced for years to come, undertakings against which it can be held to account. That is the basis of my letter to the company.

[Rachel Maclean (Redditch) (Con)]

I thank the Secretary of State for his statement. Like many colleagues, I have a constituency interest in the matter. As he knows, because he has been kind enough to meet me, the global headquarters of GKN is in Redditch. Some 260 people, many of whom are my constituents, have been told that their jobs will go if this takeover goes ahead. I welcome the commitment that he has been given by Melrose to maintain the UK headquarters for a five-year period. What does he understand that this would mean for my constituents in Redditch?

[Greg Clark]

It is important that we recognise the benefits and valued presence of GKN in many parts of the country. It is a pivotal UK engineering firm, with a long heritage. The commitment that I obtained from Melrose was for that to continue, and that is what it has set out, but it is for shareholders to judge the decisions that the future management may make.

Industrial Strategy

Debate between Rachel Maclean and Greg Clark

Monday 27th November 2017 Commons Chamber

[Greg Clark]

I am interested that the hon. Lady has got to page 202 already—that is high productivity. Of course, as the White Paper makes very clear, we want not only to continue our international collaborations, but to deepen them. That is very important, because the most productive industries are international. A big part of our negotiations, which she knows full well are continuing, is focused on getting a deal that is not just in our interests, because exactly the same logic applies to our European partners; they have no more interest than we do in interrupting those deep and successful relationships. That is why we have made that commitment.

[Rachel Maclean (Redditch) (Con)]

I welcome the industrial strategy, as a proud midlands MP representing a constituency that played its part in building our reputation as the workshop of the world. Will my right hon. Friend please say a little more about how we will go further in addressing some of the productivity gaps between London, the south-east, Oxford and Cambridge and our regions? May I suggest that a great way to do that would be to build an institute of technology in Redditch?

[Greg Clark]

My hon. Friend makes an excellent proposal. Let me choose one of the aspects of the industrial strategy that is relevant: the importance of local leadership with the powers to make a difference. She is fortunate as a midlands MP, as we are fortunate in this country, to have Andy Street as the new West Midlands Mayor, who is already playing such a significant leadership role in the area. As my hon. Friend will know, last week, the Budget set out significant investment in the region’s transport system in order better to connect those areas that have not been well connected to Birmingham and other towns and cities in the midlands, which we know internationally is key to raising productivity.

Energy Price Cap

Debate between Rachel Maclean and Greg Clark

Monday 3rd July 2017 Commons Chamber

[Greg Clark]

No, it is one of the reasons why this investigation was commissioned and why what I have asked Ofgem to consider and enact will be particularly important to the hon. Gentleman’s constituents in Wales.

[Rachel Maclean (Redditch) (Con)]

Will my right hon. Friend join me in welcoming Ofgem’s proposal to consult on more measures to help microbusinesses?

[Greg Clark]

I do welcome that. We have talked about household consumers, and for many very small businesses, their energy bill is also an important component of their costs. In my request for advice, which it was technically necessary to make to Ofgem, I asked for that advice to apply to microbusinesses as well.