(11 years, 3 months ago)
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My hon. Friend is right. Skills are a major factor when people are deciding where to invest. Something that I found surprising, or perhaps even shocking, was that when the CBI conducted a survey of companies, it found that 42%, across all sectors, reported a skills gap when recruiting. That skills gap is as true in my local context as it is nationally.
South Basildon and East Thurrock has a long and rich industrial heritage, and I shall, if I may, blow my constituency’s trumpet for a moment. For example, one in 10 of the world’s large tractors are built in Basildon, at Case New Holland, generating £7 billion of exports. The personal IED-blockers that our servicemen wear in Afghanistan are built, designed and programmed in Basildon by Selex. Gardner Aerospace is a medium-sized engineering firm, employing more than 200 staff in my constituency. It is a tier 1 supplier to Airbus—there is not an Airbus A380 that flies without a part made in Basildon—and it competes with firms in cheaper-cost-base countries such as India and China, and why is it able to compete? Because of its quality and because it delivers on time.
Given the excellence of the Airbus-producing manufacturer in the hon. Gentleman’s constituency, has that impacted at all on his ideas about the virtue or otherwise of the European single market?
It is a great pleasure to serve under your chairmanship, Mr Walker, and to follow the hon. Member for Mid Worcestershire (Peter Luff), who has produced another compelling and interesting speech. I begin to think that he is a renaissance man, given his involvement also in the upcoming commemorations of the 800th anniversary of Magna Carta in 2015.
The Opposition welcome the Science and Technology Committee’s report. It is an important intervention on a question vital to rebalancing our economy and improving our competitiveness and, as we have just heard, for reasons of national security. “How do we educate tomorrow’s engineers?” is our collective exam question. The Opposition also welcome the Government’s response to the report, now that it has finally arrived.
I follow the hon. Member for South Basildon and East Thurrock (Stephen Metcalfe), serving as a constituency Member of Parliament, in thinking of the excellent traditions of engineering that we have in Stoke-on-Trent. I am thinking particularly of Goodwin International, a company now in its 10th generation of family ownership, which produces precision steel engineering for nuclear power stations in China, as well as for bridges around the world. Olympus Engineering is another fine business in my constituency.
As the report and many colleagues have noted, the UK engineering sector comprises more than 500,000 companies, employing 5.4 million people and generating one fifth of our GDP and half our exports. In 2010, it generated a £1.15 trillion turnover. By any measure, that is a profound contribution to our economic well-being. We all want to move wealth across the country away from London and the south-east to ensure greater equity in our constituencies. The sector is a profound part of our economy.
Although I would be happy, indeed delighted, to wax lyrical about the wonders of Richard Arkwright, Isambard Kingdom Brunel, Thomas Telford and Stoke-on-Trent’s own Reginald Mitchell, designer of the Spitfire, at the moment we should think of the future and the modern global race for competitiveness. We are not where we need to be on skills, as the recent global survey by PricewaterhouseCoopers outlined. That survey of more than 1,300 chief executive officers revealed that UK business leaders are more concerned about the availability of key skills than any of their western European counterparts, rating the issue as the greatest threat to their businesses’ growth. We have heard evidence of that in the debate. Three out of four chief executives said that creating and encouraging a skilled work force should be the Government’s highest priority for business in the year ahead.
Nowhere is the struggle for skills more obvious than in engineering. As the Committee report outlines, by 2020, we will need 820,000 science, engineering and technology professionals, 80% of whom will be required in engineering. One need only look at the Indian institutes of technology or what is going on in China to realise that the rest of the world is not going to wait around for us to catch up.
The hon. Gentleman is making a powerful point, with which I am sure we all agree. Does he therefore fully accept that we are competing on a global stage and that we are in a global race? We owe it to our young people to give them all the skills that they need to compete in that global race.
I absolutely agree. The challenge is how to do so, and politics is the issue. We must push ourselves up the quality supply chain if we are to earn our money in the world. It is therefore depressing to read in the report that 31% of high-tech manufacturing firms had recruited people from outside the UK owing to a lack of suitably qualified people from within the UK. It is both a business and a national security question.
One area in which we simply must improve, as the Chair of the Select Committee and the hon. Member for Mid Worcestershire suggested, is redressing the gender balance and the under-representation of women across the engineering sector. New research by EngineeringUK reveals that many girls rule out careers in science and engineering by the time they are only 14 years old. The UK has the lowest number of women scientists and engineers of all EU countries, fewer than 9% of girls opt for physics at GCSE level and 25% of schoolgirls think that science careers are most suited to boys. I remember hearing powerful evidence from the chief executive of Brompton Bicycle about looking for a female design engineer; candidates simply did not come forward. He wanted a female engineer precisely for a different way of thinking and problem solving, and for the new capacities that she could bring into his company.
Of all OECD countries, we currently languish at 21st for intermediate technical skills. I thought that at this stage I would introduce some partisan rancour. One would think that the Government would be doing all that they could to promote engineering and science and to develop a rigorous approach to vocational education and technical skills. We could have had a modern skills settlement in the Gracious Speech. That would have been far more useful to British competitiveness than grandstanding on a European referendum.
Although I am happy, indeed delighted, to pay tribute to the Minister’s excellent work on promoting mathematics in schools and encouraging greater female take-up of mathematics, sadly, the Government have not fulfilled the other side of the equation. Instead, they have devalued apprenticeships, undermined careers guidance by abandoning the statutory duty to provide work experience and downgraded a successful qualification in the engineering diploma. From the Committee’s evidence, it seems difficult to substantiate the Government’s claim in their response that they considered the views of the engineering sector carefully when downgrading the diploma in the infamous paragraph 17.
Like the Chair of the Select Committee, I also look forward to seeing those responses, because the evidence is unequivocal. National Grid suggests that downgrading the diploma will make it a less attractive option to schools. Meanwhile, the Engineering Employers Federation stated that the downgrading of diplomas has not sent out the signal to employers and young people that the Government are serious about the status and value of vocational education. I could go on.
In light of that damning verdict from the sector’s leading employers’ federation, will the Minister enlighten us as to how exactly she considered carefully the engineering sector’s views on the process of the downgrade? The Opposition agree with the EEF’s verdict and support the Committee’s position that the downgrading of the diploma represents a poor message about how much the Government value engineering education. It is all very well for the Government to suggest that they are now consulting on a replacement, but it is difficult to find fault with the Committee’s simple argument that any new plans could have been developed before the decision to downgrade. Indeed, that is arguably representative of elements of the Government’s education agenda.
We all support a rigorous grounding in core subjects, and it would be impossible not to welcome, along with other hon. Members, the increasing number of pupils studying triple science and A-level mathematics, as the Government outlined in their response. The point about the EBacc, however, is not that such core subjects are not an important part of a well-rounded education for all—of course they are. The point is in the narrowness, both the incentive it provides to schools to narrow an academic offer and, more importantly, the numbers of students it affects. As the Chair of the Select Committee pointed out, that can often lead to perverse outcomes.
A case in point is design and technology. Manufacturers and engineers have made it clear that they are troubled by its removal from key stage 4 as a compulsory subject.
If they are less unhappy with the new curriculum, I look forward to reading their comments in due course.
What we need is the rigour not just of the past but of the future. Of course, the Government have belatedly announced their proposals for a technical baccalaureate, and that is a welcome change of tone. When the Labour party announced its plans for a TechBacc, the Government dismissed our proposed gold-standard vocational qualification as something that would
“leave millions of state school pupils unemployable.”
If that is not talking down vocational education, I do not know what is.
Labour’s technical baccalaureate would have a work experience requirement, and businesses told Labour’s skills task force that such a requirement is crucial. We would also place control over accrediting courses for the TechBacc qualification in the hands of business. Rolls-Royce or Jaguar Land Rover, for example, which, as has been mentioned, are going to transform the skills training economy in the west midlands with the i54 development, could be involved in designing the content of engineering education. That is in contrast to the Government’s vision for the TechBacc as an institutional performance measure—a wrap-up performance measure— rather than as a gold-standard qualification.
Mr Walker, sadly you were not here, but in the previous debate we discussed the Education Committee’s seventh report. I endorse the concerns expressed in this report, which echo those of that report, that the Government have removed the statutory duty for work experience. In the public consultation to Alison Wolf’s excellent report, 89% of respondents did not believe that the duty should be removed, and with employers routinely complaining, as we have heard this afternoon, about the lack of workplace knowledge and the arguably poor employability of many young people, the Government must consider whether scrapping work experience is a good idea.
The hon. Gentleman is right on one level. Work experience, when done well, can provide a really good opportunity to get an insight into either a sector of our economy or the world of work. Too often, however, work experience for 14 to 16-year-olds is not rewarding at all and can put people off work. Schools often scratch around trying to find enough employers to provide what is, basically, a sitting service for two weeks at the end of year 10 and the start of year 11. It has to be valued and it has to be good, and sometimes that is not possible at 14 to 16. That is why I think that the emphasis on later, and quality, work experience is much more valuable.
Of course the hon. Gentleman is right that bad work experience serves no purpose. The onus is clearly on the responsibility to deliver an effective work placement. Once careers guidance is downgraded—as we have discussed—our worry is whether the capacity to offer rewarding work experience and work placements will be there in schools. We will see how this rolls itself out, but with careers, work experience and work placements there is a genuine concern that the Government’s emphasis and attention are not where they could be, precisely at the time when so many young people face the real possibility of unemployment.
Some points in the Government’s response are welcome. Clearly, the new accountability proposals are a small step in the direction of correcting the narrow focus of the EBacc as the sole performance measure. The Opposition also welcome the progress made on university technical colleges, which play a small but vital role in delivering engineering excellence. We have heard about the work of Sir Anthony Bamford and JCB but, as the hon. Member for City of Chester (Stephen Mosley) suggested, they are not the universal answer, and we must ensure that science and technology is delivered across mainstream schooling.
It is clear that although both sides of the House may share a similar ambition for a dynamic engineering sector at the heart of a rebalanced economy, the Opposition believe that we have a cast-iron commitment to creating the parity that is needed between academic and high quality vocational education routes, so as to educate the next generation of engineers.