Oral Answers to Questions Debate

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Department: Department for Education

Oral Answers to Questions

Sajid Javid Excerpts
Tuesday 10th November 2015

(8 years, 5 months ago)

Commons Chamber
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Michael Tomlinson Portrait Michael Tomlinson (Mid Dorset and North Poole) (Con)
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14. What assessment he has made of recent trends in apprenticeship starts.

Sajid Javid Portrait The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
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More than 2.4 million apprenticeship starts have been delivered in England since May 2010, but we are now going even further. We are committed to 3 million more over the course of this Parliament and we will ensure that they deliver the skills that employers and the economy need for continued growth.

Baroness Blackwood of North Oxford Portrait Nicola Blackwood
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We need to fill 1 million more digital jobs by 2020, not to mention finding 1 million more technicians and engineers. In that context, I am sure that the Secretary of State would agree wholeheartedly with the Science and Technology Committee’s first report, published yesterday, which states that cuts to science and innovation spending are a false economy. That spending is an investment, not a state subsidy, and it creates jobs, increases productivity and attracts inward investment. It is essential for science, technology, maths and engineering—STEM—apprentices seeking innovative British employers.

Sajid Javid Portrait Sajid Javid
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I commend my hon. Friend for her leadership of the Science and Technology Committee. She is absolutely right to talk about the importance of science, innovation and digital skills. She will know that I made a speech yesterday to Innovate UK’s annual conference, in which I set out new plans to boost science and innovation capabilities.

Luke Hall Portrait Luke Hall
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There were 740 new apprentices in my constituency last year. Will the Secretary of State join me in congratulating the hundreds of new apprentices, and confirm that he will continue to work to improve not only the quantity but the quality of apprenticeships?

Sajid Javid Portrait Sajid Javid
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I am delighted to congratulate those who have started their apprenticeships in my hon. Friend’s constituency. There has been a 45% increase in apprenticeships since 2010, and we have ensured that they are high-quality paid jobs that last at least 12 months. The whole House should acknowledge the incredible work that has been done by the Minister for Skills, my hon. Friend the Member for Grantham and Stamford (Nick Boles) on apprenticeships. He has focused not only on quality but on quantity.

Michael Tomlinson Portrait Michael Tomlinson
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Cobham, a company in Wimborne in my constituency, takes on between 12 and 18 new apprentices each year, and there have been just under 700 new apprenticeship starts in my constituency in the past 12 months. Businesses are responding to the call for new apprenticeships, but may I urge the Secretary of State to ensure that these apprenticeships really are worth while and high-skilled, so that those who undertake them will really benefit from them?

Sajid Javid Portrait Sajid Javid
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I am delighted to say that my hon. Friend’s constituency has had a 37% increase in apprenticeship starts since 2010. I know that he is very passionate about this, and that he has done much to promote apprenticeships. He is absolutely right to talk about the quality. Higher and degree apprenticeships are widening access to professions, giving young people new, well-respected routes to professional education at some of our best universities.

Iain Wright Portrait Mr Iain Wright (Hartlepool) (Lab)
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The Secretary of State talks a good game, but the fact is that apprenticeship starts have dropped in every single year since 2011-12. The ambition for 3 million new apprenticeship starts is commendable, but would he concede that, in the light of the uncertainty surrounding key policy aspects such as the apprenticeship levy, he is going to struggle to hit that target?

Sajid Javid Portrait Sajid Javid
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First, I must point out that there were more than 492,000 apprenticeship starts in 2014-15, which was up 50,000 on the previous year. The hon. Gentleman mentioned the apprenticeship levy, and I know that he and his Select Committee have done some work on this. I hope that he will acknowledge that that will be a way of ensuring proper funding for apprenticeships, not just for the quality but for the quantity too.

Caroline Flint Portrait Caroline Flint (Don Valley) (Lab)
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In Doncaster, we were absolutely delighted to secure one of the two sites for the national college for high speed rail, but the Government seem to be a bit lukewarm about that now. We want to get on with developing and expanding apprenticeship opportunities in the rail industry, so will the Secretary of State confirm that he still fully backs the site in Doncaster for the college?

Sajid Javid Portrait Sajid Javid
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I am happy to reassure the right hon. Lady that we are committed to the college. It is right that it should be in Doncaster, and it will make a big difference to skills in an important area for our future infrastructure.

Baroness Chapman of Darlington Portrait Jenny Chapman (Darlington) (Lab)
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What impact does the Secretary of State think cutting the funding for further education colleges by 40% might have on the availability and quality of apprenticeships?

Sajid Javid Portrait Sajid Javid
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I speak as someone who went to an FE college, and no one needs to tell me about their huge importance up and down the country. My priority is to make them stronger, and one way we are going to do that is through local area reviews, which will look at local need.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
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The video gaming industry contributes more than £3 billion to our economy and supports skilled jobs across the country, including in my constituency. Representatives of the industry tell me that the biggest barrier to growth is a lack of skills, yet there are no employee-led level 4 higher apprenticeships in video gaming, and the NextGen Skills Academy, which was working with employers to develop such an apprenticeship, is said to have lost its funding. We cannot allow the Government’s lack of a digital skills strategy to make it “game over” for Britain, so will the Secretary of State give me a guarantee now that the video gaming industry will get the apprenticeship standard that it needs? Yes or no?

Sajid Javid Portrait Sajid Javid
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The hon. Lady should be reassured, first, by the fact that I have met representatives of the video gaming industry on a number of occasions to discuss several issues, including skills. She will know that it is important that apprenticeships are employer-led, and it is up to any industry to come forward with proposals. We are already working with more than 1,000 employers on more than 140 apprenticeship programmes that they are helping to set up, and we will work with the video gaming industry, too.

Henry Smith Portrait Henry Smith (Crawley) (Con)
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2. What steps he is taking to support the aerospace industry.

Andrew Stephenson Portrait Andrew Stephenson (Pendle) (Con)
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16. What steps he is taking to support the aerospace industry.

Sajid Javid Portrait The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
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The Government are working with industry, through the Aerospace Growth Partnership, to remove the barriers to growth, to boost exports and to grow high-value jobs. As part of that work, we are supporting the industry’s investment in technology, competitiveness, productivity, and skills.

Henry Smith Portrait Henry Smith
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I am grateful to my right hon. Friend for that answer. Will he join me in congratulating Boeing, which has a significant base in my constituency, on more than doubling its workforce since 2010 and on increasing investment in UK suppliers from £1 billion to £1.4 billion over that period?

Sajid Javid Portrait Sajid Javid
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I certainly will. Crawley is an important area for aerospace: Jeppesen-Boeing has a fantastic flight training and service facility, which includes the largest number of Boeing Dreamliner simulators in the world; and of course the area is also home to Thales and London Gatwick airport. I commend my hon. Friend on the work he has done to promote this industry.

Andrew Stephenson Portrait Andrew Stephenson
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The last financial quarter saw the highest ever number of aircraft deliveries—it was up 5% on last year’s figure and up 34% on 2010’s. Many aerospace companies across Pendle credit the Government’s Aerospace Growth Partnership as having played a key role in that success, so will the Secretary of State confirm that he will continue to support that valuable partnership?

Sajid Javid Portrait Sajid Javid
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Yes. I see regular dialogue with the sector councils, such as the Aerospace Growth Partnership, as a vital part of our industrial approach. It is important that the UK continues to become more productive and more competitive, and that has been central to the work of the Aerospace Growth Partnership. I will be meeting many of that industry’s representatives on 3 December in Filton.

Ian C. Lucas Portrait Ian C. Lucas (Wrexham) (Lab)
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Further to that question, will the Secretary of State confirm today that the UK Government will continue to fund the Aerospace Growth Partnership through their £1 billion contribution over seven years from 2013 and that he is not considering in any way diluting the funding available for the Aerospace Growth Partnership, particularly by converting it into loans?

Sajid Javid Portrait Sajid Javid
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The Government are absolutely committed to having a strong aerospace sector, and that strength is represented in our commitment to the Aerospace Technology Institute, which is what I believe the hon. Gentleman was referring to.

Liz Saville Roberts Portrait Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
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Discussions move ahead on the UK’s first space port. Does the Minister agree that safety, especially that of the general public, is of primary importance in considering the location of such a space port? Do not a coastal location and extensive airspace unhampered by commercial flying, such as are available at Llanbedr in my constituency, make a crucial contribution to any safety assessment?

Sajid Javid Portrait Sajid Javid
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The hon. Lady is absolutely right to say that safety is paramount in that sector. We have consulted on a location and we will be talking to our colleagues in the Department for Transport on the outcome.

Laurence Robertson Portrait Mr Laurence Robertson (Tewkesbury) (Con)
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As the Secretary of State is aware, I have world-leading aerospace companies in my constituency, and they are appreciative of the help the Government are giving to the sector. The biggest problem they still face is the inability to recruit a sufficient number of young people who are considering engineering as a career. What discussions is he having with the Education Secretary about persuading teachers to enlighten pupils as to the opportunities that exist in the sector?

Sajid Javid Portrait Sajid Javid
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My hon. Friend makes an important point. Skills in engineering, not just for this sector, but for many others, are hugely important. With my right hon. Friend the Education Secretary, we are working closely to get more employers into schools to talk to schoolchildren about their prospects and the huge opportunities that exist in that industry. There is always more that we can do, and he is absolutely right to raise this issue.

Yvonne Fovargue Portrait Yvonne Fovargue (Makerfield) (Lab)
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Last week, Paul Everitt, the head of the aerospace trade body, ADS, said:

“Loans for research and development are not appropriate and that kind of approach would put the UK at a disadvantage.”

May I press the Secretary of State to answer the question of my hon. Friend the Member for Wrexham (Ian C. Lucas) and rule out replacing research grants with loans that will damage Britain’s ability to innovate and compete?

Sajid Javid Portrait Sajid Javid
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I made a speech yesterday at the annual conference of Innovate UK in which I talked about the many ways to help the sectors. Grants, exports and skills are just some of them. One thing this Government will not shy away from is supporting that sector, and supporting innovation.

John Stevenson Portrait John Stevenson (Carlisle) (Con)
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3. What steps he is taking to support the manufacturing sector.

Sajid Javid Portrait The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
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The best way the Government can support manufacturers is by sticking to their long-term economic plan. That includes cutting red tape by a further £10 billion, creating 3 million apprenticeships, lowering corporation tax and devolving budgets and powers to local leaders.

John Stevenson Portrait John Stevenson
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My constituency of Carlisle in north Cumbria has a strong and healthy manufacturing sector. I helped to promote the industry locally by organising a skills fair, which the Minister for Skills will hopefully attend next year. However, what assistance can the Government give to Cumbria to attract skilled workers not just from Cumbria, but from other areas to help complete large infrastructure projects such as the nuclear new build at Moorside?

Sajid Javid Portrait Sajid Javid
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I commend my hon. Friend on his annual skills fair, which I know is already making a big difference to his constituents. He will be pleased to learn that the advanced manufacturing centre at Carlisle college will begin construction in 2016-17 with growth deal funding. There is no doubt that that will help to boost local skills.

George Howarth Portrait Mr George Howarth (Knowsley) (Lab)
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Does the Secretary of State accept that although it is important that employers have a leading role in the development of skills, it is also necessary that skills are transferable? Unless the FE sector is involved in the process of training people and giving them those skills, those skills will not necessarily be transferable.

Sajid Javid Portrait Sajid Javid
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I agree about the importance of transferable skills. Our local area review of the FE sector up and down the country will look very closely at local needs, and at ensuring that skills are transferable.

Tom Pursglove Portrait Tom Pursglove (Corby) (Con)
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What steps is my right hon. Friend taking to protect British manufacturing from dumping on our market and maximising the effect of existing international rules?

Sajid Javid Portrait Sajid Javid
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My hon. Friend knows that, when it comes to trade measures, action has to be taken by the European Union. I know that he has a particular interest in steel, and this is a hugely important issue about dealing with unfair trade. We discussed that at the emergency Council that I attended yesterday in Brussels. One thing that was agreed in the presidency conclusions was that the Commission should prioritise certain cases, and that certainly includes the steel industry.

Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
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Last week in my constituency, the Mahle Group announced the loss of up to 200 highly skilled jobs in the manufacturing sector. The Scottish Government, devolved agencies and local authorities are already involved, but this is a classic example of a European-wide company shipping the process and jobs to another plant in the EU. What support can the UK Government provide, and what can they do both to stop such moves in the future and to encourage long-term investment in technology here?

Sajid Javid Portrait Sajid Javid
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We can continue to make the UK as attractive as possible for manufacturers. What we have seen in the past five years is that output is up for the manufacturing sector, exports are up and jobs are up, and that is because of our long-term economic plan, which is bringing in tax cuts, investing in skills, cutting red tape and boosting exports.

Mike Wood Portrait Mike Wood (Dudley South) (Con)
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Will the Secretary of State bring forward details of the package of support that will be put in place to help those workers in the black country affected by the collapse of Caparo, including 54 in my constituency, so that the skills can be retained within the black country engineering sector?

Sajid Javid Portrait Sajid Javid
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My hon. Friend is right to raise the issue. It is hugely important that workers who are affected by the crisis in the steel industry get whatever help can be provided. We have rolled out plans for support across the country, and we are talking to local leaders to see what more we can do.

Angela Eagle Portrait Ms Angela Eagle (Wallasey) (Lab)
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The official Opposition have had to drag the Government, kicking and screaming, to the House time after time to get them to stand up for British steelmaking. It is now almost two weeks since the Business Secretary finally went to Brussels to hurry along the European Commission on state aid approval, and yesterday he attended the EU Competitive Council. Although there were welcome pledges for the future, no action was agreed that will make a material difference to our steel industry now. How long must the industry continue to wait for the compensation package promised by the Prime Minister in 2011 to be paid in full? When will the Business Secretary get a grip, stop hiding behind the EU and do more to tackle the root causes of this crisis?

Sajid Javid Portrait Sajid Javid
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It is a shame that the hon. Lady has to take that attitude. It would be better if she were a lot more constructive on this issue. I could point out that under 13 years of Labour we saw a 45% collapse in steel production and jobs halved—cut by more than 10,000—because of her Government’s policies. This Government are taking the issue seriously. This Government called for, and were granted, an emergency Council meeting at which we agreed on a number of actions. They will be published today and there will be further information in my written statement, which the hon. Lady can read.

Louise Haigh Portrait Louise Haigh (Sheffield, Heeley) (Lab)
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5. What progress he has made on introducing a market rent only option for pub tenants.

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Neil Carmichael Portrait Neil Carmichael (Stroud) (Con)
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6. What his priorities are for business in the Government’s negotiations for reform of the EU.

Sajid Javid Portrait The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
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We must empower businesses to compete more effectively by accelerating the integration of the single market, especially in the services, digital and energy sectors. We will do this by cutting red tape for business and pushing for more ambitious free trade agreements between the EU and the rest of the world.

Neil Carmichael Portrait Neil Carmichael
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Does the Secretary of State agree that the best interests of business will be served by our being a member of a reformed and reforming European Union? That extends to our remaining in the single market. From my right hon. Friend’s vantage point as President of the Board of Trade, it is extraordinarily useful that the European Union can negotiate such good strong deals for us globally.

Sajid Javid Portrait Sajid Javid
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My hon. Friend is right to highlight the importance of the need for EU reform, but many businesses believe that the costs of membership currently outweigh the benefits. As the Prime Minister said, in order for us to get the best deal, we must have the referendum and let the British people decide.

Conor McGinn Portrait Conor McGinn (St Helens North) (Lab)
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Last week a group of senior business figures in the north-west said it was vital for jobs in our region that Britain stays in the European Union. Will the Government heed what they say and perhaps make it a priority in the negotiations that the £800 million of EU structural funds given to the north-West will continue?

Sajid Javid Portrait Sajid Javid
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The one thing that businesses agree on is the need for reform. They are united in that, whichever business group one speaks to. If we can get those reforms, which I am confident about—and the Prime Minister has talked more about them this morning—we will see an even bigger boost to jobs and opportunities in Britain.

Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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Will the Secretary of State remind the House of the trade deficit that we have with the EU, and of the fact that the unreformed EU is clearly not working for British business?

Sajid Javid Portrait Sajid Javid
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My hon. Friend is right to remind us of the current deficit. That is why one of the reforms that we want is a deeper and broader single market which includes digital and professional services, which Britain is very good at, alongside manufacturing, so that we can do more trade.

Hannah Bardell Portrait Hannah Bardell (Livingston) (SNP)
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Writing in The Telegraph, the Prime Minister’s potential successor as leader of the Tory party, the hon. Member for Uxbridge and South Ruislip (Boris Johnson), said that the Prime Minister was right

“to unsheathe a section of the blade that might soon be used to cut the rope and set Britain free”

from the EU. Has the Secretary of State made an assessment of the likely impact on Scottish business of Britain turning its back on its European trading partners, and does he think that is appropriate language from a man of such standing?

Sajid Javid Portrait Sajid Javid
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I agree that we need reform. All Members on the Government Benches agree on the need to fight for that reform, which means cutting red tape and creating a deeper single market, more ambitious free trade agreements and fairness between the euro-ins and outs. I hope the hon. Lady will join us in fighting for that reform.

Hannah Bardell Portrait Hannah Bardell
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A poll of Scottish business last month found that 82% of small and medium-sized businesses support the UK remaining in the EU. I dare say that those businesses value their ability to export more than £12.9 billion-worth of goods and services throughout the EU, creating wealth and jobs at home. Have this Government not lost all control of an exit agenda that was started only to appease right-wing Eurosceptic Back Benchers and may very well result in Scotland being dragged into delusional imperial isolation against its will?

Sajid Javid Portrait Sajid Javid
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I welcome the hon. Lady to her new role, which I omitted to do earlier. She will know that one of the most important sectors in Scotland is the financial services industry, whether asset management or banking. That is one area where we could have deeper single market and do more trade with the rest of the European Union. If she supports that cause, then she will support our efforts to reform the EU.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
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7. What estimate he has made of the number of students from India applying to study in the UK in each of the past three years.

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Julie Elliott Portrait Julie Elliott (Sunderland Central) (Lab)
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15. What recent discussions he has had with the Foreign Secretary on the effect on businesses of the UK’s membership of the EU.

Sajid Javid Portrait The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
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I work closely with the Foreign Secretary, particularly through the exports taskforce, which I chair, to deliver growth for British business. UK businesses send 45% of their exports to the EU and benefit from the single market. The reforms that we are pursuing are good for the EU, good for the UK and good for British business.

Julie Elliott Portrait Julie Elliott
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Some 160,000 jobs in the north-east rely on trade with the EU. We are the only region in the country consistently to deliver a trade surplus. What assurances can the Secretary of State give my constituents, many of whom are understandably concerned about what an isolated Britain on the fringes of Europe might mean for their jobs and livelihoods? Will he vote to stay in the EU and stand up for British jobs?

Sajid Javid Portrait Sajid Javid
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The hon. Lady has some excellent manufacturers and other companies in her constituency, including Nissan, which recently announced a huge investment. What business wants in respect of the EU is more certainty and reform, so it welcomes the reforms that we are fighting for, and the certainty that the referendum will bring.

David Nuttall Portrait Mr David Nuttall (Bury North) (Con)
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One of the biggest impacts on UK businesses comes from the EU social chapter. As recently as 2010, the Conservative manifesto said that we would “negotiate the return” of power over “employment legislation”. Is that still going to happen, or have we gone backwards in our ambition?

Sajid Javid Portrait Sajid Javid
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We have set out our priorities in respect of making the whole EU, not just Britain, more competitive. They include cutting red tape and having more free trade agreements. We have set out those priorities in detail. I listened carefully to what my hon. Friend had to say and will reflect on it.

Nigel Mills Portrait Nigel Mills (Amber Valley) (Con)
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T1. If he will make a statement on his departmental responsibilities.

Sajid Javid Portrait The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
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My first and foremost priority in recent weeks has been to do what I can to help the steel industry. I pushed for and was granted an emergency meeting of the Council of Ministers, which took place in Brussels yesterday and led to a number of actions being agreed. I reiterate our support for the people in Redcar, Scunthorpe, Lanarkshire and elsewhere who have lost their jobs recently. This is an extremely difficult time for all who are affected. I say to them: we are resolutely on your side.

Nigel Mills Portrait Nigel Mills
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Many businesses in the construction sector in my constituency are still suffering from excessive levels of retention being taken by prime contractors. What more can the Secretary of State do to encourage the phasing out of retention before the 2025 deadline?

Sajid Javid Portrait Sajid Javid
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My hon. Friend raises an important point that a number of people have made to me recently. Cash retention is a common practice that can provide insurance for customers against poor workmanship. However, the scope for misuse is clear. That is why the Government have commissioned a review of the practice. We will see what action we can take.

Gordon Marsden Portrait Mr Gordon Marsden (Blackpool South) (Lab)
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Further education has already been weakened by five years of Government funding cuts, so why are Ministers having hasty, half-cocked area reviews that threaten forced course and college closures? Figures released by the Library today suggest that the Chancellor is demanding at least £1.6 billion in FE cuts, and a new Green Paper proposes free-for-all providers that would threaten colleges’ higher education teaching. Are Ministers doing anything to stop FE being the spending review’s whipping boy?

Sajid Javid Portrait Sajid Javid
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We have discussed this issue previously. As I have said, we want an even stronger FE sector that provides even more opportunities across the country, and local area reviews are essential for that. We need to understand local needs much more carefully, and local reviews will achieve that. We will then be able to offer more opportunities.

Chris Heaton-Harris Portrait Chris Heaton-Harris (Daventry) (Con)
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T3. Many English Members of the House, while unable to recall individual results in the tournament, were extremely proud that England hosted the rugby world cup this year. What does my right hon. Friend estimate is the positive economic impact of hosting the rugby world cup?

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Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
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T4. I wish a happy Diwali to you, Mr Speaker, and to everyone celebrating it. Given Narendra Modi’s visit this week, will my right hon. Friend describe the various trade, educational and bilateral arrangements that will be announced, and say what Narendra Modi is looking forward to seeing during this visit?

Sajid Javid Portrait Sajid Javid
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I commend the work that my hon. Friend has done over many years to boost ties between India and Great Britain. A number of commercial announcements will be made during the visit of the Indian Prime Minister. Those will demonstrate the full breadth of the relationship between us and India, and will cover healthcare, energy, financial services and creative industries. That will help to boost both of our economies. Later next month, I will lead a trade mission to boost education exports alongside the Minister for Universities and Science.

John Bercow Portrait Mr Speaker
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Louise Haigh is not here. I call Bridget Phillipson.

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Robert Jenrick Portrait Robert Jenrick (Newark) (Con)
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For British businesses operating in highly regulated sectors such as the legal sector, India remains an incredibly restricted market to break into—in many respects, even more so than China. Will the Secretary of State use this week’s visit as a catalyst to move forward long-standing discussions on the service sector?

Sajid Javid Portrait Sajid Javid
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My hon. Friend is absolutely right to raise this issue. Britain and India do a lot of trade together, and there is a lot more we can do if we put our minds to it. These are exactly the kinds of issues we look forward to raising this week.