Small Business, Enterprise and Employment Bill

Richard Graham Excerpts

Tuesday 18th November 2014 Commons Chamber

[Toby Perkins]

I do. You will be glad to know, Mr Deputy Speaker, that I will come on to new clause 2 in more detail in a moment, but I basically agree with my hon. Friend’s point. His constituents in Sefton, who feel strongly about their local pub industry, will be glad to know that he took part in debates in the Public Bill Committee and has signed new clause 2.

That brings me nicely on to the contributions that a variety of Members from throughout the House have made on the subject in recent years. The hon. Member for Salisbury (John Glen) told the House about the landlords of the White Horse in Quidhampton, alleging that Enterprise Inns had

“signed them up to a lease on a false prospectus and…made their business completely uneconomic and unsustainable”.—[Official Report, 13 June 2013; Vol. 564, c. 476.]

The hon. Member for Meon Valley (George Hollingbery) has confirmed that the closure of the White Hart in South Harting was caused by

“unsustainable rent demands...from Enterprise Inns”.—[Official Report, 13 June 2013; Vol. 564, c. 476.]

The hon. Member for Romsey and Southampton North (Caroline Nokes) wrote to Enterprise Inns to inform it that the Abbotts Mitre public house in Chilbolton was

“under threat largely due to unrealistic rents and changes in terms and conditions”.

The hon. Member for Bristol North West (Charlotte Leslie) wrote to Enterprise Inns asking it not to close the Lamplighters in Shirehampton, and the hon. Member for Cheltenham (Martin Horwood) has bemoaned Enterprise’s decision not to save the Little Owl. As a Sheffield United fan I am not generally in favour of saving the Owls, but in this case it would have been important. He said that

“a big company has failed to recognise a pub’s value to the community.”

The hon. Member for Pudsey (Stuart Andrew) was also concerned with saving the Owl, this time the one in Rodley, whose threatened closure he blamed on

“the mounting costs imposed by the building owners, Enterprise Inns”.

The hon. Member for Bromley and Chislehurst (Robert Neill) said of the sale of the Porcupine in Mottingham that the public were

“incensed that their right to bid for the pub has been bypassed deliberately by Enterprise Inns and LiDL”.

[Richard Graham (Gloucester) (Con)]

The hon. Gentleman is giving a terrific roll-call of his party’s MPs who are apparently now standing up for pubs, but he completely forgets what happened to pubs over the 13 years of the Labour Government. Thousands of them closed all over the country under their regime. This is an extraordinary moment of amnesia, is it not?

[Toby Perkins]

I think the moment of amnesia is the hon. Gentleman’s, because all the Members I have listed so far are Conservative Members—in fact, many of them are sat behind him. I was not seeking to make a party political point. Sadly I do not have in my speech—as it is currently drafted, although we know these things are subject to change almost on the spur of the moment—a reference to a contribution that he has made to saving a pub, but he might well want to tell us either now or sometime in the future about what he has done to support pubs in his local area.

[Richard Graham]

The hon. Gentleman will be interested to know that I launched a strong campaign some months ago to save the Ridge and Furrow in Abbey. It is an ongoing process, and I am confident that we will win in due course. I am grateful to him for giving me the opportunity to make that point, so that the residents of Abbey ward in Gloucester can hear it loud and clear.

[Toby Perkins]

I am glad I was able to facilitate that magic moment.

I have not finished listing members yet. The right hon. Member for East Devon (Mr Swire) told a packed crowd that he would be joining the campaign to save the Red Lion in Sidbury, which Punch Taverns was planning to sell.

The list of pub-saving parliamentarians is long. My right hon. Friend the Member for Tooting (Sadiq Khan) joined the campaign that successfully saved the Wheatsheaf, and my hon. Friend the Member for Westminster North (Ms Buck) was busy trying to save The Clifton and The Star. My right hon. Friend the Member for Southampton, Itchen (Mr Denham) campaigned to save the Bittern, and my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane) joined the Legh Arms campaign for community pubs—the list goes on. Eventually, however, comes the time to put up or shut up, and many people outside this House will be looking to see what we do.

--- Later in debate ---

[Greg Mulholland]

I thought I had given clarity. I ask the hon. Lady and all hon. Members to read this detailed new clause, as this is precisely why all of us who have been involved in writing it have done so. Let me read new clause 2(4):

“For the purposes of this section,”

meaning the market rent only option,

“the definition of a ‘large pub-owning business’ is a business which, for a period of at least six months in the previous financial year, was the landlord of—

(a) 500 or more pubs (of any description)”.

That cannot apply to any family brewer, and because it is in primary legislation, it cannot be changed in the future.

[Richard Graham]

Will the hon. Gentleman give way?

[Greg Mulholland]

I will briefly, but I have covered the point. I do not think I could make it any more clearly, but I will give way to my hon. Friend, whose work I respect.

[Richard Graham]

The point is not so much about whether the specific paragraph excludes microbrewers and small family brewers; the question is whether they support this proposal. It is interesting that the microbrewers’ trade association does not. It is concerned that it leaves the doors open for greater domination by foreign-owned brewers such as Carlsberg and AB InBev. The issue is not the hon. Gentleman’s integrity or the value of his drafting work on the paragraph, but the unintended consequences of new legislation. I should declare that my family has a pubco. It is a very small pubco, with two pubs, but we would not be in favour of the amendment.

[Greg Mulholland]

I will put on record strongly that there are many small pub companies and breweries that run their pubs exceptionally well and, interestingly, are doing very well and are expanding rather than contracting, but here is the rub: I speak directly to my Conservative coalition colleagues. The question I put to them is this: “Do you believe in competition? You all say you do. If you do, you should not be afraid of allowing brewers of all sizes to compete.” The reality is that small microbrewers do not have adequate, fair and direct access. They cannot turn up at thousands of pubs and say, “We would like to sell our beer to you because we believe it is good.” They are prevented from doing that.

Let me tackle the issue directly; this will be controversial. SIBA, the Society of Independent Brewers, has a direct delivery scheme that used to be part of the solution to the pubco closed shop. It is now part of the problem; many small independent brewers have contacted the save the pub group to say that. Incidentally, there was a U-turn in SIBA’s position. SIBA was a member of the Independent Pub Confederation, which supported the market rent only option. Seemingly without consulting its members directly, SIBA suddenly decided that it was against it; that is what SIBA members have told me. It no longer represents the majority of microbrewers on this key issue.

--- Later in debate ---

[Richard Graham]

The hon. Gentleman is generous in giving way and I appreciate that, especially as he knows that I will not necessarily speak in support of his new clause. The crucial point is that hundreds of new microbreweries have been springing up over the last few years; the microbrewery in my family’s pub sprang up last year. This will make no difference to them whatever.

[Greg Mulholland]

I am afraid that the hon. Gentleman is simply wrong. I can send him the e-mails I have received from microbreweries—cider as well as beer producers. They are desperate to get more direct access, so that they can knock on the door of the pub 2 miles down the road and say, “We believe our beer is great and that your customers would like to drink it. We would like to sell it to you at our brewery price, rather than you having to go through the SIBA-directed delivery scheme, which has a considerable mark-up, or get on a pubco list,” as the pubco outrageously demands an incredibly low price that many microbrewers simply cannot afford to brew at, and then marks up prices by 60% to 70% to sell the product to their own so-called business partners. Is that seriously a model that Conservative MPs can support? I remain baffled by that.

Let me remind you, Mr Deputy Speaker, of the reality of the pub company model. As I look round, I see hon. Members who have family and smaller brewers in their constituency and want to support them; I respect their position, and I am at one with them on that, which is why the Fair Deal for Your Local campaign has always said that the provision should apply only to companies with over 500 pubs.

Let us look at the reality of what the big pubcos have done to skew the traditional tied tenancy model. Punch Taverns, a pub company that does not brew a single pint of beer, made a profit over 10 years—these are its figures from its own annual report—of £2.271 billion, all from on-selling beer to its own so-called business partners. Frankly, in any other country, that would be called a protection racket. It is extraordinary and unjustified, which is why it is right for us to try to deal with it.

If Members do not believe that this is an anti-competitive model—I know that some colleagues behind me do not, for their own reasons—they should listen to former Punch licensee Alison Smith, a Conservative activist who has e-mailed all colleagues today to tell of the reality of the pubco business model, and how it stifled her and her partner, preventing them from being able to create a successful pub. Even though they were doing well and improving their business, the draconian terms of the pubco lease meant that that was simply not possible.

What do hon. Members think these large pub companies are? They are not pub companies at all; unlike the traditional brewers, these are people who do not really care about our pubs or our brewers. There was a huge rush in the City when people saw this “get rich quick” scam, a way to inflate the value of companies artificially by basing it on what they could overcharge their own tenants by—their tenants for 25 years on these outrageous, new, long-term, fully repairing and insuring leases.

Let me give the example of what happened to the excellent Sir John Barleycorn in Hitchin. The community, I am delighted to say, applied to use powers introduced by this coalition Government to apply for community value status; they applied for the pub to be an asset of community value. There were objections. The most vociferous one said:

“the current use of the premises as a public house…does not itself further the social wellbeing or social interests of the local community and therefore is not land of community value.”

Who said that? Was it someone living down the street who was anti-pub? No, that objection was from the so-called pub company Punch Taverns, which was seeking to get rid of this pub and sell it off after forcing out the licensees. That is what is going on.

If there is any doubt that this model is closing pubs, let me read out the stark evidence of the figures. These figures, collated by CGA Strategy for the British Beer & Pub Association and CAMRA, showed that there was a much greater drop in the number of leased and tenanted pubs than in the number of free houses between December 2005 and March 2013. The number of non-managed—that is, tenanted and leased, mostly tied—pubs fell by 5,117, whereas there was a fall of only 2,131 free-trade pubs. All pubs have issues—there has been a difficult recession—but the difference is clear and stark.

We could also look at the pubco trade association’s own figures—figures that it has frankly been keeping very quiet about. Its own figures show that over 10 years, the number of non-managed—in other words, tied, tenanted and leased—pubs decreased by 8,000, while the free-trade sector expanded by 1,600 pubs. I repeat: that is its own figures. Between 2008 and 2012—just four years—the two giant pubcos, Enterprise Inns and Punch Taverns, collectively disposed of over 5,000 pubs—a third of all their pubs in just four years. Can any Member seriously stand up and say that this is a business model that is working for pubs?

--- Later in debate ---

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I have a sense of déjà vu as I rise to speak about this subject yet again. I shall confine my remarks to new clause 2, because that very well-researched clause is consistent with nearly 10 years of successive recommendations from the Business, Innovation and Skills Committee, and because I feel that it will address an issue that all the other proposals have failed to address: the unfair relationship between the pubco and the tenant. That unfairness, and the need to redress it, were spelt out to me in a letter that I received from a tenant, who wrote:

“The pub company wins all the time, they get a share of the Games Machines, the pool table, the Rent and they also put £30-£50 on top of each barrel so we pay a lot more for our beer than buying it off a wholesaler or warehouse.”

I realise that the Minister and the Government have moved a long way in the last two years, from insisting that a voluntary code would be sufficient to deal with the problem to recognising, following a long consultation, that it was necessary to introduce a statutory approach. However, I feel that, in its current form, that approach is lacking.

Let me begin by responding to the Minister’s reference to a possible Lords amendment postponing the implementation of the Government’s proposals until after a review and a ministerial decision. I oppose that course of action for a number of reasons, some of which were mentioned by the hon. Member for Leeds North West (Greg Mulholland). The industry has already been consulted to death. As the Minister said, the Government’s last consultation received an enormous number of responses, and it took them a long time to reach their conclusions. I therefore see no grounds for any further consultation.

The issue here is the deeply entrenched position of the British Beer and Pub Association, which represents the pub companies and which, over the years, has consistently paid lip service to the BIS Committee recommendations for the introduction of a voluntary code while dragging its feet and procrastinating at every stage of the procedure. Indeed, our last report referred to “glacial” progress. There is no reason to believe that any further consultation over the next two years will make any difference whatsoever.

[Richard Graham]

Does not the history of pubs and beer in this country show that the unintended consequences of legislation over the years have frequently proved almost disastrous?

[Mr Bailey]

I understand that argument, and I have some sympathy for it. However, the hon. Gentleman referred to unintended disastrous consequences. I think that many people would describe the closing of 27 pubs a week, which is happening at this moment, as a pretty disastrous scenario. I do not pretend that all the closures are a direct result of the beer tie or that all the pubs are owned by pub companies, but those are undoubtedly major factors in a high proportion of the closures. Given the current rate of closures, if we delay for two years the industry will have been greatly slimmed down even within that time.

--- Later in debate ---

[Andrew Griffiths]

Of course; this is a market and there is always going to be an inequality of bargaining power. If I am buying 10,000 items, I will have greater bargaining power than if I am buying only one. The question that we have to ask ourselves is whether the publican, the tenant, is being treated fairly.

[Richard Graham]

I have huge respect for the hon. Member for Wrexham (Ian Lucas) and for his colleague, the hon. Member for West Bromwich West (Mr Bailey), both of whom have made some good points. I must point out to them that when my family pub buys beer, we are just one pub doing that and we are hugely disadvantaged compared with the buying power of the big companies—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Order—[Interruption.] Mr Graham, do not pull a face. It does not help. Mr Griffiths is the person who is speaking, not Mr Lucas, so please address Mr Griffiths.

[Richard Graham]

I hope that I was very clear, but if you want me to repeat my point to my hon. Friend the Member for Burton (Andrew Griffiths), I would be happy to do so, Mr Deputy Speaker.

[Mr Deputy Speaker]

I assure you that I do not. I call Mr Griffiths.

--- Later in debate ---

[Andrew Griffiths]

I understand the intentions behind the hon. Gentleman’s new clause, but its fundamental aim is to break the tie. There have been many investigations of the tie, and it has been proved lawful. It has also been proved not to be anti-competitive. What we want to stamp out are the abuses, where the tied model is being abused by companies that treat their tenants badly. That is what the Bill will do, without the addition of new clause 2.

[Richard Graham]

My hon. Friend is absolutely right. For the record, does he agree that if someone disagrees with new clause 2, that does not make them an unabashed supporter of large pubcos? We have the right to criticise abuses in individual pubs, such as the one in my constituency.

[Andrew Griffiths]

Thank you, Mr Deputy Speaker. I saw that look in your eye, so I shall try to make some progress.

--- Later in debate ---

[Paul Murphy]

No, I will not. The hon. Member for Leeds North West made it clear that the detail in new clause 2 was specifically designed to exclude small companies such as Brains and others. It is possible that those companies were frightened by the tactics of some hon. Members and others, or, worse, that they were frightened because the pubcos had told them that they wanted friends to defend their own position. I do not believe for one second that small companies in my constituency, or anywhere else, would be adversely affected if pub companies allowed their tenants and landlords to earn a living wage—what is wrong with that?—to have a variety of cheaper beers, including those of the small companies, and to ensure that the profits are shared. Nothing in that could be said to be anti-competition. On the contrary, it probably means that they would do better in their pubs if they were allowed to earn more, to share their profits properly and to sell beer and cider from the microbreweries that exist in many of our constituencies. No, this is all about scare tactics.

[Richard Graham]

May I ask the right hon. Gentleman a simple question? He has quoted Brains, a small brewer in his constituency. For the record, does it, or does it not, support new clause 2?

[Paul Murphy]

It has already been said that Brains has misgivings about it. I am saying—[Interruption.] Of course it has written to me. It has written to other Members in South Wales. I am saying that those companies are misguided—[Interruption.] Will the hon. Gentleman contain himself while I answer him? Brains and others believe— because they have been frightened into believing it—that new clause 2 will affect them adversely. That is not the case. At the end of the day, those companies will benefit from the new clause.

Oral Answers to Questions

Richard Graham Excerpts

Thursday 16th October 2014 Commons Chamber

[Richard Graham (Gloucester) (Con)]

8. What recent discussions she has had with the Secretary of State for the Home Department on tackling violence against women.

[The Minister for Women and Equalities (Nicky Morgan)]

I have regular meetings on this important issue with my right hon. Friend the Secretary of State for the Home Department, the latest as recently as yesterday. The Ministers for Women and Equalities also attend the quarterly Home Office inter-ministerial group on violence against women and girls. The group will meet later this month to discuss progress against the action plan to end violence against women and girls.

--- Later in debate ---

[Nicky Morgan]

I entirely agree with my hon. Friend. Education is at the heart of this Government’s approach to preventing violence against women and girls. It is a topic that schools may include in personal, social, health and economic education. To further support teachers we have set up an expert group on PSHE and we are also extending funding to the PSHE Association to provide specific guidance on consent. Our prevention campaign, “This is Abuse”, encourages teenagers to rethink views about rape, consent and violence in relationships.

[Richard Graham]

I welcome the Government’s consultation on widening the definition of domestic abuse. May I highlight in that context the creation of the Hollie Gazzard Trust, named after a young hairdresser murdered in Gloucester by her ex-boyfriend? The trust’s goal is to help save lives by stopping domestic abuse before it is too late. It now funds awareness sessions in secondary schools by the Gloucestershire Domestic Abuse Support Service. Will my right hon. Friend join me in congratulating Nick Gazzard on that and other trust initiatives, which might be cloned elsewhere in the country and spread a powerful message of hope out of tragedy?

[Nicky Morgan]

I thank my hon. Friend for highlighting the important work of the Hollie Gazzard Trust and congratulate Nick Gazzard on the work he and others have done to support it. I am aware of that tragic case and the devastating impact of coercive and controlling behaviour on its victims. In recognition of that, the Government definition of domestic abuse has been expanded to capture non-violent behaviour. We are now consulting on whether the law needs to be strengthened to keep pace with those developments and provide the best possible protection to victims.

Birmingham Schools

Richard Graham Excerpts

Tuesday 22nd July 2014 Commons Chamber

[Nicky Morgan]

I thank my hon. Friend for that. The list I read out before is, as I said, in the Ofsted inspection handbook. I understand that schools refer to it, but I will certainly see whether there are any other ways in which this is communicated.

[Richard Graham (Gloucester) (Con)]

Four years ago, with great assistance from the Secretary of State’s predecessor and the Minister of State, my hon. Friend the Member for Bognor Regis and Littlehampton (Mr Gibb)—it is good to see him back—the new Gloucester academy was established and a multi-faith chaplaincy created, where an Anglican and a Muslim, Chris Blockley and Rafiq Patel, successfully served the pastoral and faith needs of the school. Does my right hon. Friend agree that this is a positive way to foster integrated schools and communities, with a focus on broadening, not narrowing, minds, building bridges, not barriers, and avoiding the dangers identified in Peter Clarke’s report, so that all children grow up knowing that what they have in common is much greater than any cultural or faith differences?

[Nicky Morgan]

I completely agree with my hon. Friend and it sounds to me that Gloucester academy is both excellent and has thought its way through these issues and come up with a winning solution. By the sound of it, it typifies one of the fundamental British values I have already mentioned—tolerance of those of different faiths and beliefs and mutual respect—and long may that continue.

Oral Answers to Questions

Richard Graham Excerpts

Thursday 6th March 2014 Commons Chamber

[Jenny Willott]

The hon. Lady will know that the Government looked at zero-hours contracts last summer, and are currently consulting on related issues such as exclusivity clauses and so on, which are just some of the problems that people have highlighted. Following on from that consultation, we will look at what measures need to be taken to ensure that such contracts are used positively and not to cause problems for those who are being exploited by them.

[Richard Graham (Gloucester) (Con)]

22. What steps he is taking to raise awareness of export support services among small and medium-sized businesses.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

I refer my hon. Friend to the answer I gave some moments ago.

[Richard Graham]

On my last trade envoy mission to Indonesia, I arranged for a film to be made of about a dozen SMEs that were with me before, during and after the mission in order to show it at later seminars across the country to convince small businesses that they can export successfully to far-away growth markets. Does my right hon. Friend agree that such low-cost films made by different trade envoys in different markets could be an attractive tool to encourage SMEs to export?

[Mr Speaker]

I have just learned something new. I did not know that the hon. Gentleman was a trade envoy, but I do now and I am pleased to learn it.

Vocational Qualifications

Richard Graham Excerpts

Wednesday 5th March 2014 Commons Chamber

[Matthew Hancock]

Crossrail, which is the biggest construction project in Europe and is happening under this Government, has a rule on the number of apprentices involved in procurement. That has had a very positive impact and we are building the FE college that will ensure that we provide such apprenticeships for HS2 as well.

[Richard Graham (Gloucester) (Con)]

I was disappointed by the curmudgeonly approach of the shadow Minister, the right hon. Member for Birmingham, Hodge Hill, to the great success of apprenticeships under this Government. In my constituency of Gloucester, the impact of the increased funding for apprenticeships means that there are now more than three times the number of apprentice starts every year than there were in 2009, and youth unemployment fell by 45% last year alone. When the hon. Gentleman said that he was scratching his head, I was not surprised, because when the shadow Chancellor came to Gloucester he said that he was concerned about the level of youth unemployment. There is always more to do, but it is 20% lower than it was under Labour’s watch. Today, can we celebrate—

[Mr Speaker]

Order. The hon. Gentleman has had a pretty healthy dollop.

Oral Answers to Questions

Richard Graham Excerpts

Thursday 23rd January 2014 Commons Chamber

[Jenny Willott]

The hon. Lady is right and the Government are also concerned about the level of non-compliance. Since 1 July, HMRC has been prioritising complaints from apprentices about non-payment of the national minimum wage, and we are ensuring that every single case is investigated. We also started an awareness campaign in November that targets schools, colleges, jobcentres and so on, so that those starting apprenticeships are aware of what they are entitled to. From 1 October the skills Minister has been writing to all apprentices starting a Government-funded scheme to ensure that they know what they are entitled to and that businesses know what they must pay, so that we reduce non-compliance.

[Richard Graham (Gloucester) (Con)]

18. What assessment he has made of the potential for reshoring and import substitution in the UK economy.

[The Minister for Universities and Science (Mr David Willetts)]

There is great potential for business reshoring to Britain. We surveyed manufacturing small and medium-sized enterprises and found that 11% have reshored some production to the UK in the past 12 months. The Automotive Council has identified £3 billion of additional sourcing opportunities. Businesses are bringing activities back to Britain as we become a more flexible and competitive economy.

[Richard Graham]

I believe there is more we can do to help reshoring, for example by making cash contributions to regional growth funds, cutting business rates locally for manufacturers bringing back jobs and adding reshoring to the UK Trade & Investment job description. Does the Minister agree that on import substitution there is a real opportunity to encourage supply chains to get local suppliers to compete for business? For example, Gloucestershire-based ADEY Professional Heating Solutions recently gave a £1.5 million contract to Future Advanced Manufacture, business that was previously being done in China.

[Mr Willetts]

My hon. Friend is absolutely right. We are, of course, an open economy and we export and welcome companies from abroad that invest here, but we can do more to support our supply chains so that more prime manufacturers in Britain also purchase from SMEs across the country. Indeed, I remember visiting the company to which he refers. It is an excellent example of what we are talking about.

School Governors and School Improvement

Richard Graham Excerpts

Tuesday 8th October 2013 Westminster Hall

[Neil Carmichael]

I thank the hon. Lady for her helpful intervention. That was one of my points. She is absolutely right, and I thank her for her support.

I want to touch on sub-regional structures, academy chains and other such structures that one might expect to find when schools collaborate. Collaboration certainly does make a difference. I suggest that some formal federal structure might be the answer in many situations. Mutual help, by which I mean learning best practice from others, getting support when there is a problem and being able to reach out for expert help, is really important. I accept the point that has just been made. I would even go further and say that the Government might want to consider making sub-regional structures more formal where that is appropriate. A horizontal or vertical structure, or a combination of both, is a good way of ensuring that the best leadership is available to schools. That applies to rural areas where there is a variety of smaller schools, or to a secondary school with a number of feeder schools.

Another point relates to the question of skills versus stakeholders. The Select Committee talked about that in some detail. It was right to do so, not least because I encouraged it to take on the issue. It has always concerned me that if schools are boxed in with certain stakeholders on their governing bodies, they might not be able to reach out for the appropriate skills. I have never been completely satisfied that all stakeholders are accountable to the body that appointed them or that they represent, so calling them stakeholders is, in some cases, an exaggeration. The Government need to focus on getting the right skills, and all barriers to that should be removed, which means that there should be considerably less focus on stakeholders and more focus on skills. I call on the Government to consider that point.

[Richard Graham (Gloucester) (Con)]

My hon. Friend is making some powerful points. I expected as much, given his strong personal experience of both a further education college and a secondary school in Stroud. On the point he was making, does he agree that governors in constituencies such as Stroud and Gloucester are by definition volunteers and community-minded, and that given the right experience, training and help they can play an invaluable role in the success of a school? What more does he think the Government can do to help on the training side?

[Neil Carmichael]

My hon. Friend, whose constituency neighbours mine, is absolutely right. Of course we need to encourage people to become governors. We do not want to frighten them off, and good training is critical. The Education Committee has made some powerful recommendations on training, which the Government have largely accepted. The National Governors Association has constantly talked about the importance of training. I want also to highlight the work of the all-party group on education governance and leadership, which has produced 20 questions that feature in a number of reports, including those of the Wellcome Trust and our Select Committee. Those 20 questions include a reminder that we should focus on the training of governors. We must ensure that those training packages are up to scratch and relevant to the challenges of governance now, and not to what we think it was. The Government are right to talk about setting up memorandums describing what academies turn into and how governors should respond.

UK Trade & Investment

Richard Graham Excerpts

Thursday 12th September 2013 Westminster Hall

[Richard Graham (Gloucester) (Con)]

I congratulate that towering presence among export-supporting MPs, my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski), on securing the debate. He is absolutely right to act as a champion for business, both in his constituency and around the country. There are a number of us here who like to be part of the ranks of export salesmen in the country, although sadly there are not so many in the Labour party as in the Conservative party.

[Daniel Kawczynski]

My hon. Friend refers to the lack of interest in this debate from the Labour Benches. I must say that we have double the number of Labour MPs for this debate that we had for my previous debate, because at least there is one.

[Daniel Kawczynski]

Well, there is only one apart from the shadow Minister. Last time, there were zero.

[Richard Graham]

I thank my hon. Friend for his mathematical assessment of the situation. He makes an absolutely valid point—everyone in the House should champion business and exports for UK plc.

At the heart of my hon. Friend’s argument was whether it is effective for UK Trade & Investment to straddle two Departments. That is an interesting conundrum for the Minister—the Under-Secretary of State for Skills—who, of course, straddles two Departments himself, although they are not the same two Departments that UKTI straddles. Personally, I am all in favour of activities that straddle different Departments. Cross-departmental activity is a good thing, because silos do not exist in the real world. The key to it all is having autonomy for UKTI rather than independence, which I think is what my hon. Friend the Member for Wealden (Charles Hendry), who is the Prime Minister’s trade envoy to “the -stans”, was effectively advocating and supporting earlier. However, I will leave the Minister to comment on that.

What my hon. Friend the Member for Shrewsbury and Atcham was really advocating was the crucial importance of small and medium-sized enterprises, and the importance of exports to the future growth of SMEs. He knows as I do—as we all do—how vital that is to the growth of jobs, in Shrewsbury or in my constituency of Gloucester, where we have a long tradition of manufacturing and exporting. However, as I have said before in the main Chamber, in Gloucester we lost 6,000 jobs in business during the 13 years of my two Labour predecessors as Gloucester MP, although we have created 1,600 new jobs in business since 2010.

There is a great deal more to be done, which is precisely where SMEs come in, including the 500 members of the Gloucester branch of the Federation of Small Businesses and the members of many other branches all around the country. So how do we help SMEs to export? That question has been around for a long time. In fact, I wrote a paper on it as British trade commissioner for China, which, alarmingly, was 23 years ago. What has changed since then is the speed of communication and access to information through technology. We also have the new sectors and centres of UK expertise and, above all and most interestingly, the much higher standing of the brand “made in Britain”.

To bring alive that fact most immediately, at breakfast this morning I was with the CEO of the west Kowloon cultural district authority, which covers 40 acres of reclaimed land from Hong Kong’s harbour that will be transmogrified into a fantastic centrepiece for architectural design and creative arts from around the world, under a masterplan made by Foster and Partners. It will feature a huge number of UK stars from different sectors. The CEO of the cultural authority went yesterday to see some of the things achieved by Britain in time for the Olympics. He was staggered by the fact that the BBC sports hub was created in 21 weeks.

It is worth remembering that the west Kowloon cultural district authority has been in place for 16 years and has only just put a spade in the ground. The assumption that many of us had—I spent a large chunk of my life in that part of the world—that everything is done at great speed in Hong Kong and that nothing happens very fast in Britain has been turned around over the last few years by some of the achievements in this country. They help to reinforce the concept of “made in Britain” or “created in Britain” being a powerful brand, and they give our SMEs the chance to export to markets they previously might not have even thought of.

[Jeremy Lefroy]

Does my hon. Friend agree—I lived in Tanzania for 11 years, and I declare an interest as chairman of the all-party group on Tanzania—that one thing that we need to turn around is complacency? In Tanzania, we saw “made in Britain” being a huge advantage as a brand, yet the advertising for some of our products, which in those days included Land Rover, was miserable compared with their competitors, such as Toyota. There have been many improvements since then, but we need to do far more on marketing in target countries.

[Richard Graham]

I agree on the advertising and marketing point, but in the case of Land Rover there have been more significant changes, not least in the speed, efficiency and quality of product that Jaguar Land Rover provides. It is a remarkable success story, as he would agree. I totally accept what he said about its presence in east Africa, which is a happy land in my experience.

To return to my point on the SME debate, in some ways it has not changed since I wrote that paper all those years ago. The debate focuses on what Government should do to best help SMEs export. For example, should they subsidise many trips abroad for SMEs so that they can get to know the countries to which they might export? Do the SMEs have the resources or the sales structure to be able to follow through, or are the trips an interesting but non-productive form of business tourism? Should we help only the larger companies, and through them indirectly boost SME exporters through the supply chains of those large companies?

Should we use Government offices for all export help, or can chambers of commerce be better partners for certain SME goals? In some cases, chambers of commerce can be more selective than Government can. If someone needs a lawyer in Jakarta and rings up the British embassy, the embassy will be obliged to provide a list of every lawyer in town. What that person is really looking for is just one reputable company that can do the business. Government cannot choose a lawyer for someone, but a chamber of commerce might say, “Other companies like yours have effectively used X, Y and Z.” There are situations in which a chamber of commerce can be a more effective partner for SMEs.

What about where the Government should focus? Do we think that the work on strategic goals, such as EU trade agreements made successfully with, for example, Korea will add most value, or do we need an unremitting focus through UKTI on high value added opportunities in selected sectors, such as energy and resources, on which my hon. Friend the Member for Wealden is focusing successfully in the “-stans”? I am focusing more on infrastructure and aerospace in Indonesia. Do we perhaps need something like an army—I apologise to the hon. Member for Islington North (Jeremy Corbyn) for using this metaphor—with a selection of weapons from which we choose the most appropriate for the opportunity and the market?

[Jeremy Corbyn]

The hon. Gentleman should use the word “tools” instead.

[Richard Graham]

The hon. Gentleman is absolutely right: “tools” is a better word. Do we need a selection of tools? We need a flexible approach that can draw on the most appropriate tool in the right marketplace for the right opportunity, with an organisation led, as UKTI now is, by people with direct experience of leading businesses in their own right. I pay tribute to UKTI for recruiting an old friend of mine, Crispin Simon. He is now leading on SMEs and has led at least one FTSE 350 company in the recent past.

I agree with the Minister, Lord Green, that there is much to be said for a greater role for the chambers of commerce. That is happening and is to be welcomed. We must accept that during the process the quality of service will not necessarily always be even across the world. It will vary from country to country and from chamber of commerce to chamber of commerce.

I will make a small handful of points. First, it is important that UKTI’s GREAT campaign is publicised as widely as possibly to all Members of Parliament. It is a major marketing campaign. It is visually attractive, powerful and resonates in different countries. I launched it in Indonesia. I hope that the Minister will confirm that the regional offices of UKTI have invited every MPs to the GREAT launch in their area. I am delighted to help the launch in Gloucestershire next Tuesday. All MPs can and should play a role in encouraging their SMEs to export by joining the GREAT campaign.

Secondly, UKTI is already doing very good work. My hon. Friend the Member for Wealden rightly paid tribute to that work, as did my hon. Friend the Member for Shrewsbury and Atcham, on the back of his powerful paper, which he spent much time and effort producing. I am grateful to him for doing that. They are both right, because some remarkable things are going on.

Returning to the west Kowloon example I gave earlier, it is most recent in my mind from breakfast this morning that two small companies that I had never heard of before—Keepthinking and North, which are both based in Clerkenwell, in the east of this city—have won significant contracts with that project. That is a good example of how companies that may not be known to me or other hon. Members here today are winning contracts abroad with the help of UKTI. That is important, because we already know about certain familiar exports, such as the wings, engines, landing gear and coatings and so on that make up 38% of every Airbus and are made in Britain. It is important to remember that those parts are made in Britain, because the export value is always credited to France, but it is equally important that we understand that unknown companies in new sectors have real opportunities overseas.

There is an opportunity, which I hope the Minister will agree to take up, for UKTI to hold a seminar, possibly in Parliament—we know that it is difficult to move MPs out of our comfort zone, and we are required by the Whips to attend debates and vote and so on—to update MPs on some of the opportunities in new sectors and some of the new companies across the country in sectors such as creative media, medical science, nano-science and education.

I have been promoting two things in Indonesia with a degree of success. I hope that there is more to come. The first is a fantastic computer software tabling programme for universities. There are more than 100 universities in Indonesia. The software was created by a Cambridge-based company, is high-quality and could be exported to other parts of the world. The second is a quality assurance agency, which is highly rated internationally. It is based in my constituency and is doing work in many countries across the world, but it could work in others as well. Let UKTI educate MPs, who then could not possibly complain to the Minister that they did not know what UKTI was doing or what new opportunities there were.

Thirdly, in countries in which we have both a UKTI and a Department for International Development presence, I believe we can do more to act as a united UK plc. The story of the first biodiesel plant in Indonesia, made by the wonderful Gloucestershire-based manufacturer Green Fuels—I am taking the Indonesian ambassador to Green Fuels next week—is a good example of a business contract by a private business that is totally in line with our DFID objectives for Indonesia. The contract should open further opportunities for the UK in a general sense, and I believe there are other such examples elsewhere in the world. A more united, working-together spirit by DFID and UKTI could lead to exciting results.

I finish on a note as positive as those of the Members who spoke earlier. The help given to me, as one of the Prime Minister’s trade envoys, by our embassy in Jakarta, which includes both UKTI and the British Council, has been powerful. We are all working together on strategic and tactical goals that will benefit both Indonesia and the UK, which is important. A win-win solution is much more attractive than simply trying to thrust a product at some hapless overseas country.

Prudential, for example, derives significant earnings from its Indonesian operations, and in return it provides insurance and pension solutions for many millions of Indonesians. Prudential employs no fewer than 190,000 people in that great archipelago. That is what UK companies can achieve for themselves, starting from nothing not very long ago. That is what companies can achieve for UK plc and for their host country, which shows the value of inward investment—exported investment from the UK. Such investment offers great opportunities for British SMEs to service, in this case, Prudential either in the UK or overseas, and from that base to expand and service other financial institutions. British service companies can be very successful.

Debates such as this are a great marketing opportunity for trade envoys, so it is appropriate for me to finish by saying that if Members here today, or those who read the debate later, have specialist companies in their constituencies that believe they have something to offer Indonesia, they are of course absolutely welcome to contact me. I will do my best, with UKTI, to try to help those SMEs export a little bit more.

Manufacturing and SMEs

Richard Graham Excerpts

Wednesday 4th September 2013 Westminster Hall

[Richard Graham (Gloucester) (Con)]

It is a joy to join the debate rightly won by my hon. Friend the Member for Carlisle (John Stevenson). The discussion of manufacturing has gone on for some years and will go on, because it is so important to all of us. It is especially important in constituencies such as mine, Gloucester, where making things has been what the city is all about. We are in fact arguably the bellwether for what happens to British manufacturing, because the narrative, as many hon. Members have noted, is a story of decline and recovery, and now the challenge is how to take it to the next chapter of success. My constituency, as a bellwether, is one to which my hon. Friend the Minister will want to pay attention. We make things, whether for the aerospace sector, the oil and gas sectors, nuclear power, consumption, health, dentistry or container ports; and when we export tea to China and valves to offshore Australian pipelines, the Minister will want to sit up and take notice and, indeed, come to visit the great city of Gloucester as soon as possible to see what can be done in modern manufacturing.

The story of decline we will gloss over, except to note that by 2010 new apprentices were virtually extinct in Gloucester. The specialist Gloucester training group was down to 20 engineering apprentices in one year. Small engineering companies were almost dying on their feet. Science was disappearing from school exams, and 6,000 jobs in business had been lost during the 13 years of the previous Administration.

Today, the story is rather different. We have created 2,000 new jobs in business—not all of them in manufacturing, but many—and last year alone 1,240 new apprentices started in our city. Nationally, of course, manufacturing is now going through its fastest growth, in terms of order books, for more than two decades. The output index is the highest since 1994, and non-EU exports have risen by 10% according to the latest figures. The rebalancing is full steam ahead, but we must not run ahead of ourselves. There is still much more reinvestment to be done to see a sustainable increase in manufacturing. We need confidence to spread more widely across the country and in manufacturing businesses, and of course we need banks to provide support and schools to give more time for manufacturers to tell their story and inspire youngsters.

I believe that the Government have played a useful role. I am thinking of what they have done on corporation tax, on capital allowances, which my hon. Friend the Member for Warwick and Leamington (Chris White) mentioned, on R and D and on apprenticeships, and about the renewed focus on engineering and sciences. All those things, linked to steps taken by my right hon. Friend the Secretary of State for Education on careers advice, have helped. They have been a stimulus to our manufacturers, who now have greater confidence than they used to and can see that this is a Government, finally, who are backing manufacturing and urging them to help with the rebalancing of the economy, which was so badly needed, away from finance, public service and property.

There is still, though, as I mentioned, much more to be done. As individual MPs, we can do our little bit. We can, for example, take on our own apprentice. I am delighted to pay tribute to my apprentice, Laura Pearsall, who has now completed her two-year apprenticeship with me, got her NVQ level 3 in business administration and won a good job in business. Clearly, that is not manufacturing, but manufacturers can also take on apprentices in non-manufacturing subjects, such as business admin. I am delighted that, for example, EDF Energy, whose operational headquarters for its nuclear power stations is in my constituency, now has apprentices working in finance, human resources and a variety of other sectors that are not directly running nuclear power stations.

We can also help by working with the media and our further education colleges. I congratulate Gloucestershire Media and Gloucestershire college, which were the first to launch the 100 apprentices in 100 days challenge, which so many regional newspapers have taken up. They went on to get places for 100 apprentices from companies that had never had them before. They have given huge support to the rebalancing of our economy and supported manufacturers by giving them a platform of encouragement. We can also help to create or support apprenticeship fairs and jobs fairs to highlight the opportunities in manufacturing. I have helped support three apprenticeship fairs and created seven job fairs in the past three years, and there will be much more to do over the next two years.

We can create job sections on our websites, highlighting opportunities for youngsters in manufacturing and other sectors. We can encourage all our employers to take more young people into manufacturing through apprenticeships. We can create export clubs and organise events with UKTI. We can invite Ministers to proselytise and give further encouragement. The Minister’s predecessor did that successfully at Kingsholm, and I invite the current Minister, who is full of enthusiasm, to come and encourage our businesses, many of which are micro-business and manufacturing subcontractors, such as the 500 members of the Gloucester branch of the Federation of Small Businesses. I am delighted to say that its chairman, Mark Owen, is leading from the front by taking on his first apprentice. We can also visit manufacturers ourselves, and help them to expand by assisting with council problems of additional space, parking and other local issues. There is much that we can do.

I finish by congratulating my hon. Friend the Member for Carlisle on securing the debate. I welcome the measures the Government are taking. I salute the success of our manufacturers and urge them to use their capital balances to invest more in new plant and equipment. I urge large manufacturers to look at their supply chains, our schools to engage with manufacturers, and our Ministers to help manufacturers that went abroad to return to Britain with help from the regional growth fund and local councils through waiving business rates for a period, so that we may see the brands “Made in England” and “Made in Gloucester” thrive and expand.

[Dr William McCrea (in the Chair)]

Before I call the next speaker, may I thank all Members for the discipline shown, led by the excellent example of the hon. Member for Gosport (Caroline Dinenage), in allowing everyone who desired to do so to get in to the debate? I now have the pleasure of calling Iain Wright.

Oral Answers to Questions

Richard Graham Excerpts

Thursday 18th July 2013 Commons Chamber

[Richard Graham (Gloucester) (Con)]

6. What progress he has made on a sale of shares in Royal Mail.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

On 10 July the Secretary of State laid a report in Parliament and made an oral statement setting out our decision to sell Royal Mail shares through an initial public offering in this financial year. Shares will be available to both institutional and retail investors, and 10% of the shares will be available free of charge to eligible employees so that they have a real stake in the business.

[Richard Graham]

As my right hon. Friend the Minister has already heard this morning—and there are postcard campaigns to confirm it—a large amount of misleading information is being given to my constituents in Gloucester and elsewhere in the country: claims that the Royal Mail and the Post Office are the same entity, and that the Queen’s head will go, the universal service disappear and prices rise. Does my right hon. Friend agree that those of us who want to see Royal Mail succeed deplore this campaign of misleading information and want the innovation from new capital investing in new equipment, such as to track parcels that will enable Royal Mail to succeed in the way all of us in this House want?

[Michael Fallon]

Given that Parliament has already decided that this is the right future for Royal Mail, I hope the Opposition will now join in dismissing some of the unnecessary scaremongering, and make clear what would happen if there was ever the horror of a future Labour Government: do they intend to renationalise the Royal Mail?