Oral Answers to Questions

Simon Danczuk Excerpts
Thursday 15th January 2015

(9 years, 11 months ago)

Commons Chamber
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Sajid Javid Portrait Sajid Javid
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I support everyone having a great night out and if the Government can help with that, it is a good thing. But seriously Mr Speaker, my hon. Friend is right to point out the support that the Government have provided to the film industry. Just in the last year, the Government have helped support over 300 films made in the UK with expenditure of almost £3 billion across the country, which is a good thing for us all.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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Does the Secretary of State agree that one way to increase investment in the creative industries is through retransmission fees? Where are we with the consultation on those fees?

Sajid Javid Portrait Sajid Javid
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We will be launching a consultation within weeks on this issue. I have spoken about it before, the last time being at the Royal Television Society. I agree that it is an important issue that has not been looked at for years. It is about time we did.

Education Funding for 18-year-olds

Simon Danczuk Excerpts
Tuesday 28th January 2014

(10 years, 11 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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I thank my hon. Friend the Member for Stretford and Urmston (Kate Green) for obtaining an important debate. I confess that I was unaware of the impact of the cuts to funding for 18-year-olds until it was brought to my attention by the principal of Hopwood Hall college in Rochdale, who wrote pointing out that the effect on students in our town will be hugely damaging. Hopwood Hall does a fantastic job, providing young people with vocational skills and enabling them to achieve their educational and employment goals. It also runs an excellent trainer restaurant, where I have eaten—the Riverside restaurant. It is an excellent venue with great food. There is a catering department, which provided the cake for my relatively recent wedding; the hair and beauty salon at the college also provided support—[Interruption]not for me, but for my wife; I clearly did not require those services.

I am extremely concerned that the good work done by colleges such as Hopwood Hall will be undermined by the cuts. I am told that it is expected that more than 400 students will be hit by the changes, and the college stands to lose some £400,000 in teacher funds. We all know that inequality in society is partly caused by inequality in education, and the funding cut will serve only to widen that inequality. As Derek O’Toole, the college’s excellent principal, has said:

“The majority of learners affected in Greater Manchester will be those from disadvantaged wards.”

That is the reality of the policy. I understand that there are strong financial constraints on the Government, but there must be a fairer way to allocate the funding, so that the deep implications of the policy do not adversely affect communities such as Rochdale.

I have one or two blunt points to make. I am particularly concerned about the Department’s impact assessment, which is clearly faulty, as other hon. Members have pointed out. I find it shocking that the Government contradict their own principles. The proposal seems to undermine completely their goal of reducing the inequality gap. By limiting the potential of students such as those who attend Hopwood Hall college, the Government do more harm than good.

On a personal note, I left school at 16 and I know how important it is for young people to get support to equip them for the world of work. That support was not there for me when I left school in the 1980s, and it was a struggle for me to get the skills and training I needed. We should be determined not to leave students in places such as Rochdale in the same position. We need to support colleges, not cut their funding.

Small Businesses

Simon Danczuk Excerpts
Thursday 28th November 2013

(11 years, 1 month ago)

Commons Chamber
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Mary Macleod Portrait Mary Macleod
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That is an absolutely brilliant example—that is something I would like to do to support my local businesses in west London.

I meet my Chiswick traders regularly. Last time, we met in Club Workspace, which I recommend to hon. Members. It is a much more creative and innovative way of allowing entrepreneurs to have the space to work. It is not as rigid and long-term as things used to be, but more flexible and modern. It is very effective.

I have also done apprenticeships seminars to encourage small businesses to take on apprentices. I met Mumpreneur, Athena and other groups that support small businesses.

Naturally, we are supporting small business Saturday. We will be doing lots of things during the day for it. It has galvanised my local businesses to work together. Between them, they came up with all sorts of things to do, which was brilliant to see. I have also run workshops on women and enterprise, because I believe we do not have enough female entrepreneurs, which I will address in a moment.

I wanted to mention to the Minister some of the issues that have been raised with me locally, including business rates, to which I will return, access to funding, legislation, red tape and parking. Where do businesses go to find help? More clarity and simplicity on helping small businesses would be useful.

I have a role in helping the Minister as a small business ambassador for London. Only yesterday, I went to the meeting of the London enterprise panel’s SME working group. It had four key priorities—finance and equity; the availability of work space; trade and exports; and business support—but added another at the meeting: the skills shortage. The suggestions that hon. Members have made to do more in schools, colleges and universities are important. Strangely enough, in Prime Minister’s questions this week, I asked him how we can create enterprise and business champions in each of our secondary schools—we could arguably do so before that, but perhaps we should start with secondary schools—to foster and inspire the next generation of entrepreneurs. We want young people to think of entrepreneurship as an option when they finish school, college or university. There are special financial packages for them.

Last week, I asked the Prime Minister about business rates—I was fortunate enough to have questions at Prime Minister’s questions two weeks in a row. I am glad to say that he has agreed to meet me next week to discuss reform of business rates.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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I support the hon. Lady in her concerns about business rates. Does she support the Labour leader’s proposals to freeze and then reduce business rates for smaller businesses?

Mary Macleod Portrait Mary Macleod
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I want reform of business rates and for them to be looked at very differently. In London, businesses are treated unfairly and we want fair taxation. The turnover of many small independent shops in my constituency is not as high as one might expect in London, so they are penalised by the high business rates in London. They also question what they get in return for business rates. That could be clearer—police, fire or other services. All they know is that the £27 billion raised from business rates is spread across the country. I favour a localised approach, so that we are able to reinvest in our local areas.

The Government have done a lot for local businesses. One of the big measures, which was mentioned by my hon. Friend the Member for Norwich North (Chloe Smith), was to remove £2,000 from national insurance bills. Other measures include: business mentors, £50 million- worth of £10,000 start-up loans and cutting red tape. The Prime Minister visited my constituency three years ago to meet Octink, another great local business in my patch, to consider how we can simplify employment legislation—another important issue for small businesses.

There are three key points in particular that I would like the Minister to consider. First, there should be enterprise education in schools. Businesses and entrepreneurs should be encouraged to allow students and pupils to do work experience in their businesses, and perhaps all hon. Members can help to facilitate that with their local schools. Secondly, we have already discussed business rates and I will be talking to the Prime Minister about that next week. Thirdly, returning to women and enterprise, if women were setting up businesses at the same rate as women in the US, we would have 600,000 more businesses. That would add £42 billion to the economy—a huge amount. I run workshops in my constituency, with the support of StartUp Britain and the chamber of commerce, to encourage women to think about setting up businesses. We have fabulous businesses, such as Shavata and My Plumber from Chiswick, and inspiring women who have done it for themselves and are successful.

The Government have done much and there is probably more that all of us as hon. Members can do to support the small business community. I look forward to encouraging more and more businesses in the months and years to come.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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It is a pleasure to follow the hon. Member for Brentford and Isleworth (Mary Macleod). I share many of her concerns about business rates and agree with some of the solutions she proposes. I thank the hon. Member for Newton Abbot (Anne Marie Morris), who has done an excellent job in securing the debate. It is important that it is taking place before the autumn statement, so I thank the Backbench Business Committee for helping to make that happen. Before I begin my comments proper, let me declare an interest. On small business Saturday, my wife and I will be opening a small business of our own: Danczuk’s Delicatessen in Rochdale. I encourage all hon. Members to visit and spend their hard-earned money.

Huw Irranca-Davies Portrait Huw Irranca-Davies
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I am aware of the opening of this fantastic new deli. I am sure my hon. Friend will be stocking exotic produce, but will he be making an effort to stock local produce—the food that makes his area special?

Simon Danczuk Portrait Simon Danczuk
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We will stock a variety of local produce. There will be some continental produce, but there will be traditional Lancashire produce too. It will be well worth a visit and opens a week on Saturday.

The first thing to say in a debate about small businesses is what a great contribution they make not just to our economy, but to our culture, our communities and the way we live our lives. As the hon. Member for Newton Abbot said, we need to spend more time celebrating the work of smaller businesses and the people who run them. It is these business people who are the backbone of our economy. They create the vast majority of jobs, and export their goods and products across the world. They are at the heart of innovation, which is often copied by larger businesses, and drive growth throughout the United Kingdom. They also carry the burden of worry and stress of managing risk every day of the week. We need to do more to celebrate what they do.

Small businesses are vital to our economy, but they are also vital to our society: they are one of the most powerful forces for social mobility. Academics and politicians often talk about the importance of education with regard to social mobility. That is important, but by starting and growing businesses people can thrive and prosper. They are vital in encouraging and establishing social mobility.

Mark Pawsey Portrait Mark Pawsey
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Was the hon. Gentleman as struck as I was by the assertion at a recent breakfast meeting that the top entrepreneurs were those people who had not been to university, did not have degrees and had had to work from the bottom up?

Simon Danczuk Portrait Simon Danczuk
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I thank the hon. Gentleman for that comment, because that is exactly the point I am making about social mobility and supporting entrepreneurialism and the growth of small businesses.

Let me tell hon. Members about one of my constituents. Ian lives on the Falinge estate in Rochdale, which has achieved notoriety for having the highest number of benefit claimants in the country. Like others there, Ian was unemployed. He was determined to get out of that situation, so he decided to start his own business. He cashed in his pension and set up his own fish and chip shop. He learned the ropes by working for free in another nearby chippy and then set up his own shop in the town centre. I used to pop in and have a chat with him every now and again. He was making a good fist of it and there were always plenty of customers coming through the door. In his first year, he won an award at the town’s annual business awards. Despite all that success, Ian was forced recently to close his shop simply— I do not exaggerate—because of business rates. He was paying double in business rates what he was paying in rent, and that was not sustainable.

Ian’s case is a tragedy for him and for social mobility. It demonstrates that unrealistic business rates are damaging our economy and our society. The Government need to do more on business rates and should have gone ahead with the revaluation. Hon. Members will not be surprised to hear that I support the Labour leader’s proposals to freeze and then reduce business rates for smaller businesses in particular. Business rates are not the only issue, however. Let me provide another example: banking.

Hanson Springs, a very successful family business in my constituency, was in 2009 dragged by RBS into what we now know to be the Global Restructuring Group scandal. Let me briefly explain. RBS in my opinion deliberately undervalued a property it had a loan against and used that as an opportunity to push Hanson Springs into its Global Restructuring Group. At the first meeting with GRG, Hanson Springs was introduced to a solicitor who had been brought along to discuss taking an equity stake in this family business. GRG then forced a business review with Zolfo Cooper on to it at a cost of £20,000. Its GRG manager had previously worked for Zolfo Cooper—I am sure that was a coincidence. Hanson Springs was then given three options, none of which was acceptable. As the family pointed out to me, if the business had not been cash-flow rich and if they had not had the personal resolve, the company would have been forced to close.

Hanson Springs is now 50 years old—we have moved on four years. It turns over £20 million each year, employs 180 people, exports 85% of what it produces, and since the problems with RBS, has paid in excess of £l million in corporation tax. If RBS had had its way, we would have lost hundreds of jobs and the money from taxation, and we would have had people claiming benefits and yet more manufacturing moving abroad. Hanson Springs is a perfect example of business at its best. It is a great example of a family pulling together to create something great and is probably a perfect example of social mobility, but look how it nearly all went badly wrong because of RBS’s behaviour. Ultimately, it is down to us politicians to intervene and set up the right regulatory process to ensure that banks treat our businesses better.

Smaller businesses are exceptionally fragile entities. It is our responsibility not to take them for granted and our duty to remember that these businesses are the lifeblood of our country.

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Huw Irranca-Davies Portrait Huw Irranca-Davies
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My hon. Friend makes a valid point. There has to be cross-party agreement to take this forward and to ensure that finance is available.

Let me mention one stark figure. Even though there are signs of optimism in some parts and some sectors of the Welsh economy, a recent survey of members of the Federation of Small Businesses in Wales showed 55% of them reporting that credit was unaffordable, while 65% said it was not only unaffordable but completely inaccessible. The idea that these businesses can grow by getting affordable and accessible lending is simply not happening, which is a tragedy.

Simon Danczuk Portrait Simon Danczuk
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Is my hon. Friend aware that some small businesses are afraid of approaching their banks about credit or getting an extension of their overdraft because they fear that the banks will rein things in and make it even more difficult for them?

Huw Irranca-Davies Portrait Huw Irranca-Davies
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Yes, indeed. There is a big argument not only for more localisation of the traditional banks, but for the regional bank model that Labour Members support. When I made the point earlier that that model should not be bureaucratic and civil service-driven, I was speaking from experience based not only within this country but in other European countries. That model works best where it is very locally focused and entrepreneurial, with managers of the account streams fully understanding the businesses with which they deal. Access to finance is indeed a big issue.

I will not go over business rates again, as others have done so, but it is a real issue. I believe that the proposal from Opposition Front Benchers to freeze and then reduce them is a good one. As to Ministers saying we never did it, I simply say that the proposal is there on the table for them to support if they want to do so.

I turn my attention to one area about which I have particular knowledge and concerns. I refer to supporting small businesses where the potential for employment growth is the biggest—namely, through the application of green technologies, such as solar power or insulation for greater energy efficiency in homes, and so forth. I was intimately involved in the incubation phase of the Energy Bill that the Government brought forward, and I pointed out some of its potential pitfalls. If it had succeeded, however, particularly the green deal with the associated energy company obligation, it could have provided massive incentives for tens of thousands of small businesses. I am talking about all those people who have been installing loft insulation for years and those who have switched to installing solar panels with the feed-in tariffs. They could have had a new opportunity to take on apprentices, perhaps young people in my area who cannot find jobs. The green deal work could have produced a massive expansion of the sector.

We had to highlight the problems, however. We noted that the finances did not seem to work and that it might not be possible to sell the green deal to people. Consumers are pretty intelligent people who, as they look at it, will run a mile. We said, too, that there were rogues out there who would blacken the reputation of the green deal before it even took off and, with deep regret, I have to say that that has now come true. The Minister put forward an aspirational target of 10,000 installations linked to the green deal. That would have provided one of the biggest employment boosts in the small business sector right across the country and in every single community—rural, urban or whatever. Out of that 10,000, we now know that there have been just over 200 installations. It does not matter how many installations were in the plans; they have not taken place.

We are looking to find agreement on areas that require better support—through access to finance, for example. We might have different solutions—how best to enhance access to finance, to reform business rates and so forth—but a proposal that would make a material difference tomorrow, if we got it right, is dealing with cold homes and businesses that have runaway energy costs. That means getting energy-efficiency right and getting the energy installations right. We are failing—miserably—and companies are shutting their doors on the scheme. It is a tragedy. I am sure that the Government have all the best will in the world to turn this around, but we see no sign of them putting measures in place to achieve that.

There has been considerable agreement in today’s debate about the importance of small businesses. Some will choose to stay small, but many will grow and grow, and they will thrive. Tata Steel and Ford in south Wales have a huge impact on the local economy, but they are dwarfed by the impact of all the small and medium-sized businesses that need our support.

Safeguarding Children

Simon Danczuk Excerpts
Wednesday 13th June 2012

(12 years, 6 months ago)

Commons Chamber
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Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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Let me start by congratulating my hon. Friend the Member for Liverpool, West Derby (Stephen Twigg), the shadow Secretary of State for Education, on initiating this debate. It is truly timely, not least because of the Rochdale grooming case. Indeed, there is absolutely no doubt in my mind that, following that case, the public would expect this issue to be discussed on the Floor of the House, so it is right and proper that we should be having this debate.

I have to confess that this is not an issue on which I am an expert by any stretch of the imagination, but it is fair to say that in the last few months I have learned much about it. I want to concentrate on the Rochdale grooming case, how these horrific crimes came about, what lessons can be learned and how we need to go about learning them. It is right and proper that the starting point for any discussion on this type of issue should be the victims. Let us be clear: the victims in this case—these vulnerable girls—went to hell and back, in terms of what they experienced at the hands of their abusers and the court case that they had to go through. They were passed around the perpetrators and repeatedly raped. They were continually abused and treated absolutely appallingly.

It is interesting that, after the trial, professionals involved in the care of children were saying that the girls were from chaotic families, as though that explained why they had not been cared for. I accept that the parents of those children must take some responsibility, but the local authorities involved were those children’s guardians, and they failed to guard them. The perpetrators sometimes referred to the girls as prostitutes, and it was interesting that some of the social services staff referred to them in the same way. Those girls did not stand a chance.

Three weeks ago, two health workers who had been heavily involved in the case came to see me at my constituency office to describe their experience. They said that social services managers believed that the girls had been making life choices, which is why they were seen as prostitutes. Some of the social services staff who were dealing with the girls clearly had low expectations of them. The health workers told me that although one of the girls—their client—had presented with multiple sexually transmitted infections, the council would not intervene or escalate her care. They also told me that one 13-year-old girl had asked to go into secure care to escape from the abuse. Social services responded that she was too disruptive, and that it would cost too much. Let us be clear: those health professionals were working with children who were pressing for greater intervention, more action and more intensive care, yet none of that was forthcoming. The abuse continued for years. Vulnerable girls got pregnant by their abusers, and lives continued to be ruined. That is the reality.

Yesterday, we started to hear the defence—not the defence of the perpetrators, but that of some of the agencies involved in the case. Rochdale council and Greater Manchester police gave evidence to the Home Affairs Committee. I pay tribute to the scrutiny role fulfilled by the Chairman and the members of the Committee. We heard council representatives saying that there needed to be a change in the law, because data-sharing had been a problem in the case. My right hon. Friend the Member for Cardiff South and Penarth (Alun Michael), a Committee member, pointed out that legislation in the late 1990s had enabled agencies to share all the data that needed to be shared in order to prevent a crime. In fact, such agencies are obliged to share information to prevent such crimes. Sharing data should not have been an issue. The health workers I met had made it clear that this was not about sharing data; it was about their concerns being ignored by social services. We do not need to change the law; rather, the council needs to change its culture.

During a conversation that I had with a senior officer two months ago, before the sentencing in the case, she described on-street grooming as a new phenomenon. It is no such thing. Senior officers also said that they had only just received guidance on this matter from central Government, as though they needed such guidance to intervene to stop those perpetrators abusing those girls, or to take more responsibility for them. The Select Committee also heard from the chief constable of Greater Manchester police. I want to put on the record that Greater Manchester police did an excellent job of prosecuting this grooming case. It should be noted that they have apologised for the errors they made in the attempted prosecution of 2008.

One of the chief constable’s defences for what happened—or did not happen—in 2008 was that he was concerned about these vulnerable girls going through the court system, as he thought it would be a harrowing experience. The problem with that argument is, first, that the girls were probably not consulted on whether they wanted to go through a court case; and, secondly, and more importantly, that they continued to be abused because they did not go to court. Which is worse: going through a court case or continuing to be abused?

The Crown Prosecution Service, too, clearly failed in 2008 and has apologised for it. It needs to be said that no thorough investigation took place, so we do not know who it was who took the decision not to prosecute and we do not know whether disciplinary action has been taken. This is a public body, and I believe that greater transparency needs to be applied to it.

A whole range of issues is at stake. Investigations by the local authority and by the local safeguarding children board are going on, but let me reassure the House and the public that any cover-up in this instance will not be accepted. I have been assured by the Minister and the Prime Minister that action will be taken to get to the bottom of this. I hope that that happens.

Oral Answers to Questions

Simon Danczuk Excerpts
Monday 27th February 2012

(12 years, 10 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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We are very grateful to the Secretary of State for that, for his knowledge and, indeed, for his pronunciation.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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Rochdale will get a real-terms increase of less than 1% in its early intervention grant in the next financial year, despite being 25th in the indices of deprivation. Surrey Heath, home to the Secretary of State, is the third least deprived area in the country, yet the local authority is getting a real-terms increase of 7.2%, the biggest of all local authorities. Will the Secretary of State explain to Rochdale people why that is the case when that funding is supposed to tackle deprivation?

Michael Gove Portrait Michael Gove
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It is a fair point, but we are using the formula for allocating money designed by the Government so enthusiastically supported by the hon. Gentleman over 13 years.

Oral Answers to Questions

Simon Danczuk Excerpts
Monday 21st November 2011

(13 years, 1 month ago)

Commons Chamber
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Sarah Teather Portrait Sarah Teather
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Trying to encourage smaller schools in particular to work together on best practice, especially if they have similar catchment areas, is an excellent initiative. It is helpful to hear about what is happening on the ground.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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3. What assessment he has made of the findings of the report by the Institute for Fiscal Studies on Trends in Education and Schools Spending.

Lord Walney Portrait John Woodcock (Barrow and Furness) (Lab/Co-op)
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13. What assessment he has made of the findings of the report by the Institute for Fiscal Studies on Trends in Education and Schools Spending.

Michael Gove Portrait The Secretary of State for Education (Michael Gove)
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I read the IFS report with interest, and found its arguments thought-provoking.

Simon Danczuk Portrait Simon Danczuk
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The report shows that education spending is being reduced dramatically. Head teachers in Rochdale and throughout the country deserve our praise for their hard work in dealing with the cuts that are being made by the Government of whom the Secretary of State is a member. Will he take this opportunity to apologise for describing head teachers as whingers?

Michael Gove Portrait Michael Gove
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I am grateful to the hon. Gentleman for praising head teachers in Rochdale. Head teachers everywhere are doing a fantastic job with limited resources. The one thing that I hope I shall be able to work with the hon. Gentleman to ensure is that head teachers can make those resources go even further by allowing their schools to convert to academy status.

Oral Answers to Questions

Simon Danczuk Excerpts
Monday 17th October 2011

(13 years, 2 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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Order. That is quite enough. Could I just remind the Secretary of State—I know that he tends to make this mistake—that he is not today at the Oxford Union making a speech, but answering questions in the Chamber of the House of Commons? He does so brilliantly, but from now on he will do so more briefly. That is the end of it.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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T9. Charities play an increasingly important role in education—indeed, the Secretary of State has been involved in a variety of charities. Can he assure the House that he took all appropriate steps to ensure that Atlantic Bridge did not abuse its charitable status?

Michael Gove Portrait Michael Gove
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I am grateful to the hon. Gentleman for his question. I was proud to play my part in ensuring that the relationship between this country and the United States of America was strengthened, and I will always stand in favour of the Atlantic alliance. As a member of the advisory board of Atlantic Bridge, I took the opportunity, as I will on all platforms, to say that I believe—

School Sports Funding

Simon Danczuk Excerpts
Tuesday 30th November 2010

(14 years, 1 month ago)

Commons Chamber
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Michael Gove Portrait Michael Gove
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I am sharing some facts with the House.

The data requirements for school sport partnerships are exemplified in the school sport partnership self-review tool. We all know how onerous tick-box exercises can be, and that exercise has 115 boxes to tick. Every moment spent looking at the self-review tool is a moment that could be spent coaching, inspiring and acting to ensure that more children take part in sport, but unfortunately there is too much bureaucracy.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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Will the right hon. Gentleman give way?

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Simon Danczuk Portrait Simon Danczuk
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rose

Michael Gove Portrait Michael Gove
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I am very happy to make way for the right hon. Member for Greenwich and Woolwich (Mr Raynsford). I do not know whether any of those are aspects of bureaucracy that he would be willing to defend.

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Michael Gove Portrait Michael Gove
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No—not at this stage. I was very generous in giving way earlier.

It is also important that we look at those figures more deeply in context. On schools where pupils regularly take part in intra-school competitions, in 1,280 secondary schools not a single pupil takes part in an intra-school competition. That equates to nearly one in three secondary schools where not a single intra-school competition takes place.

Simon Danczuk Portrait Simon Danczuk
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Will the Secretary of State give way?

Education Maintenance Allowance

Simon Danczuk Excerpts
Tuesday 2nd November 2010

(14 years, 2 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Nick Gibb Portrait Mr Gibb
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I take the hon. Gentleman’s point. There is evidence that EMAs have helped a small number of young people to stay on in education. However, that same evidence suggests that the scheme has a significant deadweight cost. Indeed, pilot evidence throughout the scheme, and more recent research, to which the hon. Member for Glasgow North West referred, from the National Foundation for Educational Research, found that almost 90% of young people receiving the EMA believed that they would still have participated in the courses they were doing if they had not received it.

The fact is, the EMA is a hugely expensive programme, costing more than £560 million a year, with costs of administration amounting to £36 million, but impacting on the participation of only around 10% of the young people who receive support. In effect, the taxpayer has been paying £9,300 for every extra young person who has stayed in education due to EMA. Most of the young people who receive the EMA would have made the same choices and achieved the same qualifications without it.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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The research quoted by the Minister has been questioned by other research, some of which has shown that the EMA has increased participation. My point is that it is not just about either/or, and whether the children or youngsters go into education, but it is about supplementing poorer families’ incomes so that they are encouraged to stay in education. It is not whether they go into it, it is helping them a little—with some cash—so that they stay in education.

Nick Gibb Portrait Mr Gibb
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Again, I shall come to that point in just a moment.

The hon. Member for Glasgow North West talked about how successful the EMA has been. I have acknowledged some important positive impacts, but it is also important to look at where the EMA has been less successful. That will help us to develop something that is fairer, more responsive to individual need and more efficiently targeted. Many young people and their parents think that the EMA is unfair and have told me that many people who receive it do not need it, and that some who do need it—the point made by the hon. Gentleman—are not able to claim it.

Education Funding

Simon Danczuk Excerpts
Monday 5th July 2010

(14 years, 5 months ago)

Commons Chamber
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Michael Gove Portrait Michael Gove
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Like me, the hon. Gentleman is sceptical about the way in which PFI operates. One of the problems with the BSF projects is the way in which the PFI programme was managed.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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What does the Secretary of State’s decision mean for school buildings in Rochdale?

Michael Gove Portrait Michael Gove
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Again, if the hon. Gentleman can let me know whether his financial authority has reached financial close, I will be able to tell him. I will write to him, and a full list of schools is being put in the Library. In Rochdale, I think that all the schools will go ahead.