Oral Answers to Questions

Vince Cable Excerpts

Thursday 18th November 2010 Commons Chamber

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

5. Whether his Department intends to sell assets in its ownership to provide finance for the proposed green investment bank.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

The Chancellor announced in the spending review that the green investment bank will be funded with £1 billion from departmental budgets, and significant additional proceeds from asset sales. I will provide further information on which assets will be used to fund the institution in due course.

[Luciana Berger]

What funding will the Government make available to support renewable projects in the interim period before the green investment bank is established, which current estimates suggest is four years away?

[Vince Cable]

No, it is not four years away. The intention is that investments will be made in 2012, and that asset sales will be used for that purpose. We are in the process of establishing the bank, and the hon. Lady knows that a substantial number of renewable projects are being supported under the spending review.

[Ian Swales (Redcar) (LD)]

6. What discussions he has had with the Secretary of State for the Home Department on the future of intra-company transfers following the introduction of the proposed immigration cap.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

Ministers, officials and I are in regular contact with the Home Secretary and other Ministers and officials in the Home Office to discuss the implementation of the commitment to limit non-EU economic migration. That includes discussions on intra-company transfers.

[Ian Swales]

That answer will be of interest to companies from Canada, the USA, Korea, India, Israel and Saudi Arabia that are already in the Tees valley. Will the Secretary of State ensure that the Thai company SSI is able to bring in the executives that it needs to make a success of its forthcoming purchase of the Redcar steelworks?

[Vince Cable]

The answer is yes. I pay tribute to the role that my hon. Friend has played in ensuring that SSI was able to come to the UK and transform the prospects of the Redcar plant. I can give him that assurance. Indeed, The Prime Minister said at Prime Minister’s questions that in terms of the overall cap on migration,

“things such as inter-company transfers should not be included in what we are looking at.”—[Official Report, 3 November 2010; Vol. 517, c. 920.]

[Ian Lucas]

But companies such as Nissan, Toyota and Sharp Electronics in my constituency are investing in the UK and bringing teams to train British workers in new green technologies. The prevention of inter-company transfers is stopping them investing in British business, so why is the Business Secretary supporting the Tory immigration cap that he opposed at the general election?

[Vince Cable]

The hon. Gentleman did not listen to my previous answer. The Prime Minister was quite explicit on this, and I will repeat what he said:

“things such as inter-company transfers should not be included”

in our proposal for the immigration cap. I have spoken to Nissan and other companies, and the Government are well aware of the needs of business. We are open to business and we welcome foreign investors. The proposal on the immigration cap will be pursued, but not in ways that damage those companies.

[David Rutley (Macclesfield) (Con)]

7. What plans he has to provide support for small and medium-sized enterprises in the next 12 months.

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[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

16. Whether the proceeds from the sale of High Speed 1 will be added to the start-up capital for the green investment bank.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

I am unable to provide commercially sensitive information on individual asset sales, but I can say that I do not expect the proceeds of the sale of HS 1 to be used for the green investment bank. Instead, they will make a contribution to reducing the stock of national debt.

[Gregg McClymont]

The Secretary of State has referred to his own policies as Maoist, but may I suggest that he is more like Chiang Kai-shek? He is losing the war, he has retreated to his own little island, and he is increasingly cut adrift from the mainland of this Tory Government.

[Vince Cable]

That blizzard of rhetoric rather disguises the fact that in setting up the green investment bank we are making a very real commitment to investment in a green economy, and a substantial Government financial commitment has been made to it.

[Tracey Crouch (Chatham and Aylesford) (Con)]

17. What plans he has for the future provision of offender learning and training.

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[Keith Vaz (Leicester East) (Lab)]

21. What recent discussions he has had with the Secretary of State for the Home Department on the effect of implementation of the immigration cap on recruitment and retention in small businesses.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

Ministers and officials in my Department, and I, are in regular contact with the Home Secretary and other Ministers and officials in the Home Office to discuss the implementation of the commitment to limit non-EU economic migration. Those discussions have, of course, considered all types of business across the economy.

[Keith Vaz]

I welcome the fact that 12 hours after the publication of the Home Affairs Committee’s report on immigration the Government accepted our recommendation on the immigration cap with regard to intra-company transfers. However, there is a problem, in that the Home Secretary qualified this by reference to a minimum salary of £40,000. Will the Business Secretary continue with the representations that I know he is making to the Home Office that these salary positions make it extremely difficult, especially for small businesses, to be flexible in their recruitment of people from overseas?

[Vince Cable]

I thank the right hon. Gentleman for his contribution to that valuable report, whose conclusions the Home Secretary has endorsed. Our overall approach to this is reflected in the answer that the Prime Minister gave in Parliament yesterday. He said that he wanted our policy to be

“business-friendly and helpful to the economy.”—[Official Report, 17 November 2010; Vol. 518, c. 885.]

Skilled, entrepreneurial and talented people will be welcome under the immigration policy.

[Mr Peter Bone (Wellingborough) (Con)]

I am sure that Government Members entirely welcome the Government’s cap on immigration. Obviously we will be having a debate on immigration later today, which has been put on by the Backbench Business Committee. Will the Secretary of State confirm that the immigration cap does not apply to EU citizens, so they represent a big pool for small businesses to attract?

[Vince Cable]

The hon. Gentleman is right on a matter of fact: this is a cap on non-EU migration, not on migration from the EU.

[Julian Sturdy (York Outer) (Con)]

23. What plans he has for the future of the regional growth fund.

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[Caroline Lucas (Brighton, Pavilion) (Green)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

My Department has an important role in delivering growth and the coalition’s commitment to building a new and more responsible economic model while rebalancing the economy and bringing enterprise, manufacturing, training, learning and research closer together.

[Caroline Lucas]

As the Lib-Dem Treasury spokesman in the last Parliament, the Secretary of State strongly criticised the Labour Government’s handling of the Lloyds TSB merger with HBOS, saying that the Lloyds shareholders had been sold a lemon. What does he say now to the 800,000 small Lloyds shareholders who have lost up to seven eighths of their investment, some of whom I have met in my constituency? What support will he give those who are now trying to win compensation?

[Vince Cable]

First, I congratulate the hon. Lady, as I believe that last night she received the newcomer of the year award from The Spectator. On her specific question, she will be aware that the Chancellor of the Exchequer and I established the banking commission specifically to consider the structure of banking and how competition can be improved. It will undoubtedly take into account the particular position of that bank.

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[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

T5. Nissan is an important local employer in Sunderland and it has rightly said that “relatively modest” Government investment can rebalance the economy. That is crucial in regions such as the north-east. Does the Secretary of State agree with Nissan that if the Government do not fight for new business, it will simply go elsewhere?

[Vince Cable]

One of the first decisions that this incoming Government made was to confirm support for the Nissan Leaf project. We continue to be in close contact with that company, which makes a valuable contribution to the economy in this country and the north-east, and we will maintain close relations with it.

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[Mark Tami (Alyn and Deeside) (Lab)]

In response to my hon. Friend the Member for Wrexham (Ian Lucas) and my right hon. Friend the Member for Leicester East (Keith Vaz), the Secretary of State gave vague assurances on intra-company transfers, particularly those that are vital to the future of Toyota on Deeside. When will he finally end the uncertainty that still hangs over this issue?

[Vince Cable]

The Home Secretary will announce the results of the consultation very soon, and I am sure that it will give the hon. Gentleman the assurances that he wants on inter-company transfers.

[Nigel Mills (Amber Valley) (Con)]

T7. Will the Minister agree to meet a social enterprise in my constituency whose future is threatened by the draconian attitude of RBS, which seeks nearly £400,000 in penalties for a minor breach, even though a non-nationalised bank is willing to refinance its loan fully?

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[Vince Cable]

Because those two projects have wholly different origins and outcomes. We have not made any commitment on the AgustaWestland project, which will be evaluated and negotiated in the proper way. As for Sheffield Forgemasters, the hon. Lady has been told on several occasions that if it and its supporters put in a bid to the regional growth fund, it will be considered alongside other projects.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

T8. One in five lip-reading classes in England and Wales are threatened with closure next year. Will the Minister reclassify lip-reading as an essential skill rather than a leisure activity, making sure that the classes are accessible to the hearing-impaired and continue to protect their ability to communicate?

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[Martin Vickers (Cleethorpes) (Con)]

The Secretary of State mentions that one of his key responsibilities is growth. North Lincolnshire council in my constituency recently gave planning permission for a major development that offers an opportunity for a renewable energy cluster. Will he visit the area in the near future so as to understand the full potential that it offers?

[Vince Cable]

I have a long queue of engagements, but I shall add that to the list. It sounds a very promising opportunity.

[Diana Johnson (Kingston upon Hull North) (Lab)]

Based on the equality impact assessment that I am sure the coalition Government have carried out on their higher education proposals, what will the impact of cutting the higher education teaching grant by 80% be on women?

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[Mr Prisk]

rose—

[Vince Cable]

rose—

[Mr Prisk]

As you can see, Mr Speaker, we are very keen to answer this question.

Absolutely not. Every area can bid, and the opportunities are clear for every constituency. There are also opportunities for the private sector, but the key point is that when funds are tight, we have to remind ourselves that the reason why is sitting on the Opposition Benches.

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[Kevin Brennan (Cardiff West) (Lab)]

We have learned this week from the papers that the Secretary of State is participating in the “Strictly Come Dancing” Christmas special. [Hon. Members: “Hurrah!”] Does that mean that his policy towards business and the economy is “Slow, slow, quick, quick, slow”?

[Vince Cable]

I have been taught to dance “Quick, quick, quick, quick, quick”, and that is what I will be doing, both in my Department and on the Christmas show.

[Margot James (Stourbridge) (Con)]

I understand that Lord Young is examining the impact of employment law on the growth of small business. Will my hon. Friend work with Lord Young to identify whether there are ways of modifying employment law for small businesses, particularly those that are family owned, and employ small numbers of people?