(11 years, 3 months ago)
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It is a pleasure to serve under your chairmanship this afternoon, Mr Walker, and to speak in this important and timely debate.
Why is a debate on educating tomorrow’s engineers important, and worthy of a report by the Select Committee on Science and Technology? There is no doubt that the country faces huge challenges. None is greater than the economic challenge; and our future is by no means certain, so we need to carve out a new future for our nation—one that is not based just on financial and other service-based industries, which perhaps we have come to rely on too much. They are valuable industries, but we need to rebalance our economy.
We need also to recognise that we will not return to the heavy metal-bashing industries of the past and that we need to play to our strengths; perhaps we had forgotten what they were. For too long, we abandoned—or at the very least undervalued—our skilled industrial and engineering heritage, in favour of other sectors. The time has come for that to change, and I hope that the report will instigate and support that change.
What lies behind the Government’s reforms in education must be widely and generally welcomed. There is a deep-seated belief that we need to give young people the best possible opportunities and skills to enable them to get access to the jobs that will exist in future. Some of the reforms that we considered will achieve that. We may collectively have underestimated the value of engineering, but let us not undersell ourselves.
As the Committee Chairman, the hon. Member for Ellesmere Port and Neston (Andrew Miller), said, engineering and manufacturing are still hugely important to the country. They are also important to me personally in my constituency. The UK is home to more than 500,000 engineering companies, employing, as we heard, 5.4 million people, of whom 2.3 million would consider themselves to be skilled engineers. That accounts for 8% of the work force. As we heard, it accounts for one fifth of GDP and half of all our exports, and turns over £1.15 trillion. We should not underestimate the importance of the sector, but we sometimes do, and we therefore seem to have created an ever-widening skills gap, which has consequences for the economy and for the rebalancing of our national wealth.
I am the co-chairman of the parliamentary ICT forum, and one of the things that companies always tell us is that the No. 1 thing they look for when considering investing in any country is not tax or any such factor but whether the skills that they need are available where they are thinking of locating a factory or development lab. The report ties into that.
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.