Sajid Javid
Main Page: Sajid Javid (Conservative - Bromsgrove)Department Debates - View all Sajid Javid's debates with the Department for Education
(8 years, 9 months ago)
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John Pugh (Southport) (LD)
1. What steps the Government are taking to ensure that the British automotive industry is able to develop and benefit from evolving technologies.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The UK automotive industry is already a great success, but we want to make sure that it stays at the cutting edge. We are committing almost £l billion to help develop next-generation technologies. This will make the UK the go-to location for connected and autonomous vehicles, for example, and it will facilitate automotive research and development.
Sajid Javid
I am glad that the hon. Gentleman has raised the issue of driverless cars. Britain already leads in that area, and yesterday I announced some £20 million of awards. Green energy and greener cars are also important. That is why, in the spending review recently, we announced more funding for research from Government.
Mr Philip Hollobone (Kettering) (Con)
20. Will the Secretary of State confirm that since 2013, when the Prime Minister announced his intention to hold a referendum on our EU membership, foreign direct investment in the British automotive industry and new technologies has been at record levels, because foreign companies are confident that British cars will be well made, whether we are in the EU or outside?
Sajid Javid
Actually, I can confirm to my hon. Friend that not only has foreign investment continued across British industry, including the car industry, but the auto industry has just had a record year, with more than £64 billion of turnover and 80% of cars being exported. [Interruption.]
Mr Speaker
Order. Dr Hunt, you were not taught to behave like that at your very expensive public school.
Geraint Davies (Swansea West) (Lab/Co-op)
That was a very funny joke, Mr Speaker.
The Environmental Protection Agency in America is suing Volkswagen for installing defeat devices that cheat emissions testing in millions of cars. What work is the Secretary of State doing with manufacturers in Britain to ensure that such devices are not installed, so that we can look forward to a future of greener cars where all cars are properly tested at MOT and the public are safe in the knowledge that more and more people will not die unnecessarily from pollution?
Sajid Javid
That is a good question. It should be very clear to all companies that if they engage in such cheating or bad practices, the Government will crack down hard on them. We will work with our colleagues in the European Commission and elsewhere to make sure that all rules are applied. We in the Department for Business, Innovation and Skills are working on introducing real emissions testing, with the Department for Transport and colleagues in the European Union.
Michael Fabricant (Lichfield) (Con)
In the mid-’90s, I stood up in this Chamber and said that some day, there would be self-drive cars, and everyone thought I was mad. I am reliably told that by 2020, autonomous-drive cars will be available in the United Kingdom and elsewhere. Much of that work is being undertaken in Paddington by Nissan. When will my right hon. Friend visit Nissan and other British manufacturers, such as Jaguar Land Rover and Toyota, if he has not already done so, to talk to them about autonomous-drive cars?
Sajid Javid
I have had a lot of thoughts about my hon. Friend, but madness was not one of them.
I agree with my hon. Friend about the new technology of driverless cars, in which Britain is a world leader. Yesterday at MIRA, a world-class facility in Nuneaton, we announced £20 million of funding. That will fund some eight research and development projects in areas across the country, including in the midlands, and 14 feasibility studies. With work like that, his dream of a driverless car to carry him wherever he wants to go will come true by 2020.
Rachael Maskell (York Central) (Lab/Co-op)
2. What assessment he has made of the effect on businesses of the recent floods.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We have made £50 million available to support flood recovery across the north of England following Storms Desmond and Eva, and we have already allocated £11 million to local authorities to support the 4,500 businesses impacted. Local areas also have the discretion to provide grants to any local businesses that have been affected.
Rachael Maskell
Floods have an impact on the entire local business community, which is calling for more support. At my business flood meeting in York, it called for a business recovery package, including help to maintain a customer base and to trade expediently. Will the Secretary of State look into that, and will he attend a roundtable with flood victims so that a full business recovery package can be put in place for the entire business community, not just businesses that were flooded?
Sajid Javid
The hon. Lady is right to raise this matter. Many businesses have been affected, and when something like this happens it affects the whole community. We are already looking into that. She will know that the money already made available can be used to support businesses in creative ways. On top of that, there is a £2,500 grant to help all businesses affected, and they can apply for a further £5,000.
John Stevenson (Carlisle) (Con)
A large number of businesses in Carlisle were affected by the floods. However, they affected not just businesses but the rugby club, the squash club, the tennis club and the cricket club in my constituency. Will the Secretary of State look at providing support for those organisations as well as for businesses?
Sajid Javid
My hon. Friend makes an important point about how such a disaster can affect the whole community, and he gives some excellent examples of that. Money has been made available to local authorities to provide such support for both businesses and others, and I will look further at the suggestions he makes.
Bill Esterson (Sefton Central) (Lab)
The Association of British Insurers puts the average cost of flood damage at £50,000 per business property, yet the average pay-out under the repair and review scheme has been just £1,666. That is well down on the £5,000 promised, with many businesses yet to receive a penny. In an Adjournment debate last week, we heard about the damage caused in Leeds during the last Parliament and the promises that have not been kept in relation to that. Will the Secretary of State make sure that the Prime Minister keeps his word that “money is no object” when it comes to support for businesses that have been hit hard by the recent floods?
Sajid Javid
Of course the Prime Minister will keep his word. It is partly for that reason that the Chancellor of the Duchy of Lancaster recently met the Association of British Insurers to discuss this issue, understand the scale of the problem and find out what more can be done. BIS officials have also met the ABI, which will make a difference. The hon. Gentleman may also be interested to know that, in the Enterprise Bill, we will bring forward measures later today to make sure that all businesses are paid on time by insurance companies.
Nigel Adams (Selby and Ainsty) (Con)
Many of the businesses in my constituency that were flooded are lessees and do not own their own property. They would like to avail themselves of the generous support available from the Government, but landlords may not want to engage with that system. I know one particular landlord who is not interested in Government support. What support can the Government offer to lessee businesses that are looking to them for such help?
Sajid Javid
My hon. Friend is right. In such circumstances, those businesses should of course be helped as well. We know that many of them are already applying directly to councils, to which we have provided funding. They are eligible for the £2,500 grant, and they can apply for the further grant of £5,000. They will also benefit from the three-month business rate holiday.
Fiona Bruce (Congleton) (Con)
3. What steps his Department is taking to support people who want to start their own business.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We are taking clear action to help the steel industry. We are cutting electricity costs, tackling unfair trade, updating procurement guidance, introducing flexibility in emissions regulations and reviewing business rates. That is what the steel industry has asked for and what we are delivering.
Angela Smith
I thank the Secretary of State for that answer. The Foreign Secretary said of China the other week in this Chamber that
“it is through the prism of steel that their claims to be treated as a market economy are likely to be judged in the European Union.”—[Official Report, 12 January 2016; Vol. 604, c. 694.]
Equally, the Ministry of Defence has recognised the strategic importance of the steel industry with the support that it has given to Sheffield Forgemasters. When will the Secretary of State follow suit? In particular, when will he pull his finger out and start battling for British steel with companies such as EDF?
Sajid Javid
The hon. Lady may be interested to know that it was the Secretary of State who asked for an emergency meeting of the European Council to discuss this issue of unfair trade for the first time and to make sure that when the EU takes action, it does so appropriately and in a speedy fashion. The EU is considering the issue of market economy status. When it puts forward a proposal, we will take a careful look at it. Even if a country does have market economy status, that does not stop the EU taking action, as is shown by the examples of Russia and the US.
Stephen Doughty
As you are aware, Mr Speaker, I have concerns about a written answer that I received last week from the Ministry of Defence. It stated that
“the Ministry of Defence (MOD) does not hold a complete, centralised record of steel procurement for projects and equipment, either in terms of quantity or country of origin, over the past six years.”
Why on earth should we believe the Government’s promises on procurement when they do not even keep records in the Ministry of Defence, and what will the Secretary of State do about it?
Sajid Javid
We are the first country in the EU to take advantage of new procurement rules. When it comes to defence needs and other infrastructure projects, we should use British steel whenever we can. For example, the Queen Elizabeth-class aircraft carriers are 94% British steel—that is 77,000 tonnes. Last week I visited Crossrail, the biggest infrastructure project in Europe, and almost all of it is British steel.
David T. C. Davies (Monmouth) (Con)
22. Under current rules, steel companies pay the highest energy taxes in Europe. Those taxes are then used to subsidise wind farms, which are made from cheap imported steel. Does the Minister agree that our policy needs to change?
Sajid Javid
I agree about the importance of energy costs, and that is an issue that the steel industry has raised time and again. We had previously announced a system of compensating for part of the cost, but we went further after listening to the industry. We needed to make a change, and we have made a change, which is a full exemption.
Mr Iain Wright (Hartlepool) (Lab)
In her letter to me about procurement associated with Hinkley Point C, the Minister said that
“there are few companies globally that have the capacity to make the ultra-large forgings required for nuclear power plants. It is widely understood and accepted in the nuclear industries that the UK does not have the capacity.”
Given that Sheffield Forgemasters says that it does have that capacity, and that it has supplied such forgings to nuclear plants elsewhere in the world, has the Secretary of State asked the Minister what evidence was used to make that statement? Does he think it appropriate to scrutinise the rationale behind such a sweeping statement that dismisses world-class British steel manufacturers?
Sajid Javid
I do not think the hon. Gentleman is up to date on his information, and if he were to speak to Forgemasters—I am sure it would be more than happy to speak to the Chair of the Business, Innovation and Skills Committee—it would admit that it has challenges meeting all orders for different types of steel. The important point that we all agree on is that wherever possible, when steel can be supplied by British companies, that is exactly what we should use.
Hannah Bardell (Livingston) (SNP)
Last year we became aware of Tata Steel’s intentions to mothball two of its sites in Scotland at Dalzell and Clydebridge, with the loss of hundreds of jobs. Those two sites have a proud history and they are far from being, as the Small Business Minister shamefully described them, “bits and bobs”. Further job losses have recently been announced at Texas Instruments, and at every opportunity I and my SNP colleagues have pressed the Government to produce a coherent strategy for an industrial plan. Once more I ask the Secretary of State to bring that strategy for our manufacturing sector before Parliament.
Sajid Javid
As the hon. Lady will know, we work with many industries. I attend industry and sector councils, and we have strategies, including the metal strategy, of which I am sure she is aware. She will also be aware of the actions that we have taken, such as cutting energy costs, providing flexibility on EU emissions regulations, changing procurement guidance and looking at business rates, all of which will help the steel industry across the United Kingdom.
Kevin Brennan (Cardiff West) (Lab)
If the Small Business Minister is right about Sheffield Forgemasters, why was it so furious about her words? Why did it make clear that it could supply 80% of the components necessary for Hinkley Point C? Should she apologise to the House, or can the Secretary of State do that on her behalf? What explains the answer that she gave to Parliament—ignorance, or lack of faith in UK steel?
Sajid Javid
The Small Business Minister has absolutely nothing to apologise for, and she was accurate in her statement. As I did the hon. Member for Hartlepool (Mr Wright), I encourage the hon. Gentleman to speak to Forgemasters himself. As I am sure he agrees, whenever we can use British steel for defence purposes, it is important that we do.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I was delighted to help launch the midlands engine prospectus in December, setting out our programme of action to deliver our long-term economic plan, which aims to add an extra £34 billion to the midlands economy by 2030.
Christopher Pincher
I am grateful to my right hon. Friend for his commitment. Excellent universities, a history of manufacturing and some world-class businesses make the midlands a great place to set up a business, but those businesses need to export more. Will he say what he is doing to help businesses—particularly manufacturing businesses, such as Invotec in my constituency—to do better business abroad?
Sajid Javid
In my hon. Friend’s constituency, UK Trade & Investment has provided support for some 250 businesses in the past years, including for companies such as Invotec, which have been given support to help export to India, Russia, Japan and other places. He will know that my noble Fried Lord Maude made a statement in the other place last week, which talked about the new whole-of-government approach to exports. My hon. Friend may also be interested to know that, later this year, I will lead the first-ever midlands business trade delegation overseas.
Tristram Hunt (Stoke-on-Trent Central) (Lab)
A key driver of any midlands engine will be Goodwin Engineering in my constituency. This is a world-class steel foundry business hit hard by the Government’s massive incompetence over steel policy. It is very keen for a swift decision to be made on the Swansea bay tidal lagoon. Can we have news on that decision and, more broadly, something approaching an industrial policy?
Sajid Javid
The hon. Gentleman can have news—but not today. These are the sort of decisions that we need to consider carefully. When it comes to major infrastructure, he will be pleased to know that the Government’s infrastructure plan involves over £90 billion and that we are going ahead with it.
Edward Argar (Charnwood) (Con)
One of the key drivers of regional growth in the midlands has been the success of new small businesses, which rely on getting access to telecommunications as swiftly as possible. Does my right hon. Friend share my concern about the potential impact on midlands growth due to the length of time some businesses have to wait for telecoms companies to connect them? Will he press those companies to sharpen up and speed up their act?
Sajid Javid
I agree wholeheartedly with my hon. Friend. As a midlands MP myself, I have met many businesses from my own constituency that have experienced the same problem. It is something that both BIS and the Department for Culture, Media and Sport have discussed with BT and others. Although there are examples of improvement, a lot more needs to be done.
Valerie Vaz (Walsall South) (Lab)
One hundred and twenty thousand companies in the west midlands are linked to the steel industry. Will the right hon. Gentleman say what steps he is taking to preserve those skills for future growth?
Sajid Javid
The hon. Lady is right to raise the issue of skills in that industry. The first thing is to do everything we can to help it. Of course, the crisis has inevitably led to job losses, but the measures I referred to earlier will help to protect some of those jobs. We are also talking to a number of companies in the supply chain to see what we can do with skills training to ensure that those skills are transferable.
Andrew Bridgen (North West Leicestershire) (Con)
I can assure the House that the midlands engine is firing on all cylinders, but it does need fuel in the tank. Will the Secretary of State confirm that more than £2 billion was raised in venture capital in the UK last year, which was up 50% on the year before?
Sajid Javid
My hon. Friend talks about venture capital and the importance of attracting more and more investment across the nation, and of course in the midlands, too. I am sure he would be interested to know that over the last four years, the gross value added of the midlands region has increased by 15% or £27 billion, while the number of jobs has increased by almost 300,000.
Rob Marris (Wolverhampton South West) (Lab)
The hon. Member for Tamworth (Christopher Pincher) asked about the creation of a midlands engine. I can assure the Minister that thousands of such engines are being built by Jaguar Land Rover in Wolverhampton, just outside my constituency.
The apprenticeship levy is very welcome, although there are still some kinks to be ironed out. Will the Secretary of State say a little more about how the Government will encourage the establishment of proper apprenticeships in the manufacturing industry?
Sajid Javid
Yes, Mr Speaker, in the west midlands the levy will lead to significant new investment in apprenticeships. Companies such as Jaguar Land Rover have welcomed that initiative, and intend to pursue it with gusto. We are also setting up a new standards board, which will be led by the industry. I think that is important, because it will ensure that everyone takes part and we secure the right skills outcome.
Mr Speaker
The east midlands have also been accommodated, as colleagues will have noticed.
Alex Cunningham (Stockton North) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
Britain’s high-end manufacturing continues to lead the world, and 2015 was the most successful year ever for our aircraft industry, with delivery numbers up 44% since 2010. Jaguar Land Rover is now Britain’s biggest car maker; it produced nearly 500,000 cars last year, which was three times as many as in 2009. And just yesterday, the latest figures showed that manufacturing output grew once again in January. Britain’s high-end factories are working, more Britons are working than ever before and this Government’s long-term economic plan is working too.
Alex Cunningham
We are hearing that Lord Heseltine has a big plan for the redundant SSI steelworks site on Teesside. If so, what is it?
Sajid Javid
It is absolutely right that we look at all options to generate more employment in that area, and that is exactly what Lord Heseltine has been working on. He has been working with businesses and local business leaders, and I am sure that the hon. Gentleman would welcome that. I notice that his own constituency has seen a sharp fall in unemployment of more than 40% in the past five years under this Government, and it is those kinds of policies that we will continue.
Dr Andrew Murrison (South West Wiltshire) (Con)
T2. Despite progress having been made, many small businesses, particularly those in rural areas, are struggling because of poor broadband speeds. Does my right hon. Friend think that the time has come for Ofcom to consider splitting BT and Openreach or, if it feels that it cannot do that, refer the matter to the Competition and Markets Authority?
Sajid Javid
Many individuals and businesses share my hon. Friend’s frustrations and the concerns that he has raised about BT’s perceived lack of investment and that perceived conflict of interest. I take these issues very seriously indeed. It is of course right that independent regulators should look at this issue, but let me assure him that I have discussed this directly with the head of Ofcom. I will be looking very carefully at the findings of its review and if we need to take action, we will.
Ms Angela Eagle (Wallasey) (Lab)
Does the Business Secretary believe that the Google tax deal reached by his right hon. Friend the Chancellor is fair and proportionate?
Sajid Javid
I think it was a very important deal, not least because it leads to a change in behaviour. It sends out a message that if you do not pay your taxes properly and according to the rules, action will be taken.
Ms Eagle
Well, I am not sure from that answer whether the Business Secretary thought it was fair and proportionate, but at the weekend he said that it “wasn’t a glorious moment”, even though the Chancellor had hailed it as a success. Which is it? It cannot be both. Does the Secretary of State not understand how unfair this cosy sweetheart deal with a company that seems to regard paying its fair share of taxes as a voluntary activity must seem to Britain’s millions of small businesses that are now expected to do their tax returns quarterly and have no opportunity to meet Ministers 24 times to negotiate their own private little tax deals?
Sajid Javid
When the hon. Lady’s party was last in office, some companies were regularly getting away with 0% tax rates, but Labour took no action whatever. Since the change in Government in 2010, we have closed 40 of Labour’s tax loopholes, which has helped to generate an additional £12 billion in taxation.
Byron Davies (Gower) (Con)
T6. I know that the Secretary of State and his Department are working hard to support our vital steel industry, but may I ask him what specific steps the Government are taking to ensure the future sustainability of the Tata Steel plant at Port Talbot and to ensure that Welsh steel is used in Government projects and procurement?
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
T3. The Government have set a target of trebling exports by 2020. Can the Secretary of State explain how delaying a decision on UK airport capacity supports that aim?
Sajid Javid
It is absolutely right that we make a decision on aviation capacity in the south-east, and the Government were right to appoint an independent panel to look at this. It has come back with its findings. It is right that we look carefully at those and we recently made a statement on that. There is no doubt that when the decision is made, it will be one of the contributory factors that will help us to achieve that target.
Several hon. Members rose—
Mark Menzies
I apologise to the Labour Front Benchers, too.
The backbone of the north-west economy is built around small and medium-sized enterprises, so will the Secretary of State outline what help his Department is giving to small businesses across the north-west?
Sajid Javid
My hon. Friend is right to talk about SMEs being the lifeblood of the economy in terms of the employment and growth that they produce. We have taken a number of measures, including cuts to tax and to regulation. Later on today, I will be opening the Second Reading debate on the Enterprise Bill, when we will announce a number of new measures.
Nic Dakin (Scunthorpe) (Lab)
T4. The welcome new procurement guidelines for steel are worthless unless they have an impact on procurement practice. What are the Government going to do to ensure that this is delivered properly? How will they ensure that all Departments and government contractors follow these guidelines? How will the Government assess their impact?
Andrew Gwynne (Denton and Reddish) (Lab)
T9. Has the Secretary of State read the report from the Centre for Cities, which shows that a large number of Britain’s towns and cities are low-skill, low-wage economies? What is he doing to ensure that there is joined-up thinking across Government to ensure that we tackle not just education and skills but the transport links to access those new jobs?
Sajid Javid
I have not seen that particular report, but now that the hon. Gentleman mentions it I will be pleased to take a look. He is right to identify skills as a key issue in helping to create jobs and increase productivity. That is why, for example, we have introduced the apprenticeship levy and are putting forward plans for that. It will make just the kind of difference that he is looking for.
Nadhim Zahawi (Stratford-on-Avon) (Con)
I thank the Minister for Skills for supporting the apprenticeship awards at Grosvenor House last week. We gave out awards to small and large businesses and to brilliant apprentices, as well. Would it not be great if next year we had awards for the public sector, with all the permanent secretaries at next year’s awards, after today’s Bill goes through the House, and if we saw the public sector really getting behind apprenticeships?
Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
With Hartlepool Tata, Hartlepool Caparo, Air Products, Johnson Matthey, SSI Redcar, Boulby Potash and oil and gas industry job losses, Teesside is being hit hard. May I ask the Minister to meet me and other Tees MPs to discuss the future of the SSI site? May I also tell the Minister for Small Business, Industry and Enterprise that between 1987 and 1992, in Redcar alone, the Tory party sacked 20,000 steel workers?
Sajid Javid
I am more than happy to meet the hon. Gentleman and any colleagues, and I have met him before, to discuss this important issue. He will know of all the action we have taken, and are taking, to help the steel industry. However, he makes it sound as if, when Labour were last in office—over 13 years—they actually helped the industry. Production halved, and the number of employees fell by thousands—that is Labour’s record. It is left to this Government to actually support the steel industry.
Several hon. Members rose—
Louise Haigh (Sheffield, Heeley) (Lab)
Will the Secretary of State confirm that, in a briefing on Friday to Department for Business, Innovation and Skills workers whose jobs are at risk in Sheffield, one of the main reasons given for closing their office was:
“because phones and computers don’t work”?
Is the Secretary of State, who is responsible for innovation, seriously saying that the Department responsible for sending people to space cannot find a way to communicate properly with an office 150 miles up the road? Will he now reflect on the way this farcical announcement was made and on the lack of empathy shown to those workers?
Sajid Javid
No one takes these decisions lightly. Of course, a number of people and their families are affected, and we need to do everything we possibly can to help. However, we have an obligation to taxpayers to make sure that we spend their money wisely, and that means making sure that all Government Departments are run efficiently and effectively. Even after this change, my Department will have more people—the vast majority of people—outside London, and that is the right thing.