Vince Cable
Main Page: Vince Cable (Liberal Democrat - Twickenham)
Matthew Hancock (West Suffolk) (Con)
2. What steps he is taking to promote apprenticeships; and if he will make a statement.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
The Government have prioritised apprenticeships. As a consequence, final figures show that in the full 2010-11 academic year there were 457,200 apprenticeship starts, an increase of 63.5% over the previous year. Over the past two years, the number of apprenticeships for 16 to 18-year-olds has increased by a third and that for 19 to 24- year-olds has increased by two thirds.
Matthew Hancock
May I commend the Secretary of State most warmly for what he and his Department have done on apprenticeships? In particular, may I shower praise on the absent Minister for Further Education, Skills and Lifelong Learning, who has driven this programme forward? The number of apprenticeships in my constituency has increased by almost two thirds in the past year, so will the Secretary of State ensure that some of the pre-work training—for instance, at the British Racing School, where I joined an apprenticeship scheme on the gallops—can continue under the new scheme being set up?
Vince Cable
I am happy to be showered with praise by the hon. Gentleman, and I entirely share his appreciation of the work done by the absent skills Minister. Indeed, there has been praise from a more independent source than either of us: I believe that the Chairman of the Public Accounts Committee has, rather unusually, acknowledged the considerable contribution we make through our apprenticeship programme. I am not aware of the anomaly that the hon. Member for West Suffolk (Matthew Hancock) points out, but it is an important one and I promise to investigate it.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Secretary of State knows that Labour Members like apprenticeships and welcome anything that expands genuine, good apprenticeships. But the fact is that if we are to end this inter-generational worklessness in our country, we need a new culture where nobody expects to go into unemployment at least until they are 25—that is the way to go. To change the culture, people need to be in training, education or work—no alternative.
Vince Cable
The hon. Gentleman is absolutely right and I do not disagree with a word he says. The culture is changing; there is a great appetite in business to take on apprentices and among young people to apply for apprenticeships. I am sure that everybody in the House agrees that apprenticeships are important—we are actually doing something about them.
Robert Halfon (Harlow) (Con)
Is my right hon. Friend aware that the number of apprenticeships in Harlow has increased in the past year by 76%? Is he also aware that we have a very strong bid for a university technical school in Harlow? Does he not agree that university technical schools will put young people on the conveyor belt to apprenticeships?
Vince Cable
Yes, I do agree, and we need to acknowledge the contribution that Lord Baker has made. He worked on this idea for a long time before it became fashionable, and it is now being implemented. It is extremely popular with young people and with employers, and the Government are getting behind it with financial support.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
I recently visited a number of apprentices in my constituency in apprenticeship week, and I commend the work of Hackney community college in this respect. Interestingly, the apprentices were doing training courses, but a lot of them had no real prospect of a job at the end of their apprenticeship. What can the Secretary of State say about the Government’s plans to convert apprenticeships into long-term employment for these young people?
Vince Cable
The whole point about apprenticeships is that they are training for people in work, which is why they are attractive to employers and to people who apply for them. The normal practice is that people are in work, they upgrade their skills and they proceed. The overall economic benefit to the economy was recently spelt out by the National Audit Office: for every £1 of taxpayers’ money that goes in, the overall economy derives a benefit of at least £18.
Peter Aldous (Waveney) (Con)
3. What steps he is taking to enable small and medium-sized companies to offer high-quality apprenticeships to young adults.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
We are making it easier and quicker for small and medium-sized companies to take on an apprentice by simplifying and speeding up the process for employers. Additionally, we are making available up to 40,000 incentive payments of £1,500 to help small employers recruit their first 16 to 24-year-old apprentice. A small and medium-sized enterprise review is under way to identify further ways of engaging SMEs in high-quality apprenticeships.
Peter Aldous
Although the apprenticeship grant for employers initiative is welcome in my constituency, where there are many SMEs, does the Secretary of State agree that the scheme would have even more impact if the rule prohibiting the participation of companies that have taken on apprentices in the past three years was relaxed?
Vince Cable
I understand the frustration of employers who have a good record on apprenticeships and feel that they are penalised in such a way. If we had unlimited money, we would meet the hon. Gentleman’s expectations, but the scheme that I have described is restricted to new companies that are taking on apprentices for the first time. It has to be that way for financial reasons, but I would have hoped that companies with a good record in apprenticeships will have seen the benefit of them and will offer them for good commercial reasons.
Derek Twigg (Halton) (Lab)
Terrible youth unemployment figures were released from my constituency yesterday. Companies continue to tell me that they cannot get banks to lend them money. What representations has the Secretary of State made to his colleague, the Chancellor? He promises to ensure that more money is available for small businesses, but what representations is he making to ensure that more money is available so that such businesses can take on more apprentices?
Vince Cable
The Chancellor and I discuss this problem constantly because it is a real issue for SMEs. As a result of the Merlin agreement last year, there was a significant increase in lending to small-scale enterprises beyond what they would otherwise have had. I recognise that it is a continuing issue and I am sure the Chancellor will have some ideas in the Budget about how to extend it further.
Andrew Gwynne (Denton and Reddish) (Lab)
4. What assessment he has made of the level of applications to English universities for courses commencing in September 2012.
Stuart Andrew (Pudsey) (Con)
5. What recent progress he has made in increasing inward investment.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
In December 2011 the Office for National Statistics reported a record stock of foreign direct investment in the UK at £731 billion. The Government are determined to continue to improve the UK business environment to make us a global investment location of choice. The recent major automotive investment by Nissan and the expansion of Jaguar Land Rover are very good examples of that.
Stuart Andrew
I am grateful to the Secretary of State for that answer. Attracting inward investment is going to be a key element of aiding our economic recovery. Will he inform the House of any figures he might have showing how the United Kingdom is doing in this area compared with the rest of Europe?
Vince Cable
Britain is the third-best attractor in the world of direct foreign investment and the leading country in Europe. That remains the case; indeed, the position has been strengthened by the decisions we have taken over the past 18 months.
Mr Geoffrey Robinson (Coventry North West) (Lab)
I draw attention to my entry in the Register of Members’ Financial Interests. The Secretary of State knows that this news is very welcome throughout the House and that we are delighted to see new jobs and production coming to the UK. I gather that JLR is doing that at Halewood, as well as Nissan, which is great news. Is there a danger, however, that the money for the investments being supported by the Government could be coming from the regional growth fund? If that is the case, will he confirm that there will be enough funds in it? Is there a danger of the smaller companies that are applying being crowded out? It is a challenge fund, as he knows, and on those grounds even very good and worthwhile projects could be rejected.
Vince Cable
The hon. Gentleman is absolutely right that the regional growth fund played an important part in key decisions such as Nissan’s decision to expand its operation in the UK. There is, of course, a limited amount of money; it is a challenge fund. It is because we recognise that the regional growth fund is a very valuable source of funding that we have extended it by a further £1 billion, and there is currently a new process of application taking place.
Alok Sharma (Reading West) (Con)
We are rightly hearing a lot about the special and essential relationship between the UK and the US this week, but one of the other special and essential relationships the UK has is with India. Does the Secretary of State agree that growing inward investment into the UK from countries such as India clearly demonstrates the success of UK Trade & Investment’s inward investment strategy?
Vince Cable
Indeed, and I am flying out to India tonight to pursue this issue—I think it will be my third visit since I became Secretary of State. I shall be making exactly that point—that Indian investment in the UK is extremely welcome. We are attracting more such investment and leading Indian companies such as Tata and Sahavirya Steel Industries are absolutely valuable to our economic recovery.
Mr Andrew Love (Edmonton) (Lab/Co-op)
But it is not just about increasing inward investment; it is about retaining it. I welcome the Secretary of State’s statement about the automotive industry and the increased inward investment, but there are persistent rumours that there might well be reductions in inward investment in parts of the automotive industry. What actions is the Secretary of State taking to retain that investment and to retain jobs in this country?
Vince Cable
The hon. Gentleman’s starting point was a positive one and a right one. I understand that production in the automotive industry has increased by 20% over the past year, and a lot of that is due to inward investors. If he is referring to uncertainties about the future, I am of course well aware of the problems surrounding General Motors. Within the Government, I am working very closely with the Minister of State, Department for Business, Innovation and Skills, my colleague the Member for Hertford and Stortford (Mr Prisk). I was in the United States two weeks ago talking to the chairman and chief executive about that. I have to say that the Government, the trade unions and the British management have put forward an extremely powerful case not just for staying in the UK but for expanding.
Mr Rob Wilson (Reading East) (Con)
6. What steps he has taken to encourage universities to publish data about the employment of their graduates.
Nia Griffith (Llanelli) (Lab)
10. What representations he has received on the potential effects of his proposed reform of employment protection law.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
I receive a wide variety of different representations on employment law reform, including from business groups and trade unions that I meet on a regular basis. The reforms aim to give business greater confidence to take on staff, while protecting fairness for employees.
Nia Griffith
Will the Secretary of State confirm that his consultation on no-fault dismissal has been delayed because, as one Lib Dem put it, “Conference delegates will go mental”? If even his own party members are against it, why does he not stand up to Downing street and reject this despicable policy?
Jacob Rees-Mogg (North East Somerset) (Con)
Does my right hon. Friend agree that countries with flexible labour laws have the best growth and those with inflexible labour laws have the highest unemployment; that the more we can do to ease employment by reducing regulation the better; and that this should be done as a matter of urgency, especially in the context of Europe?
Vince Cable
My hon. Friend’s basic premise is correct. I am sure that he has read the recent report by the Organisation for Economic Co-operation and Development, which said that Britain has the second most flexible labour market in the OECD, and that is what we want to retain.
Ian Murray (Edinburgh South) (Lab)
First, I congratulate the new Minister for employment law, the Under-Secretary of State for Business, Innovation and Skills, the hon. Member for North Norfolk (Norman Lamb). I am disappointed that he is not answering this question, but let me put it on record that he has been courteous and constructive in his role so far, and I wish him at least a modicum of success. [Interruption.] That is as far as my generosity goes, I am afraid.
With no plan for growth and consumer confidence at its lowest in decades, the Government are trying to make it easier to fire, rather than hire, people. There is an ongoing pitched battle between the Department for Business, Innovation and Skills and Downing street, with the Secretary of State being dragged kicking and screaming to a no-fault dismissal consultation on which, indeed, a written statement was issued only 10 minutes ago. The new Minister said in October:
“I think it would be madness to throw away all employment protection in the way that’s proposed, and it could be very damaging to consumer confidence”,
and suggested that it was crazy. Does the Secretary of State agree with his new Minister?
Vince Cable
The interesting thing about this controversy is that we are being attacked with such vehemence from the left and the right, which suggests that we are just about in the right place.
Lorely Burt (Solihull) (LD)
We welcome the publication of the Beecroft report today. Leaks reported in the media suggest that something of a fire-at-will culture will be instilled. Does my right hon. Friend agree that, at a time when many employees are suffering an uncertain future and feel vulnerable, that would do nothing for good employment relations or, indeed, for productivity?
Vince Cable
The so-called Beecroft report had a series of recommendations, most of which were sensible and unobjectionable, and are being implemented. Indeed, we are championing some of the recommendations, for example those on visas, in Government. So far, there is one area of disagreement, which relates to the no-fault dismissal issue. We want to strike a balance between making it easier for micro-companies, which have genuine difficulties with staff management because of their small scale, and the danger of creating general insecurity in the labour force. I will proceed on the basis not of ideology or vested interests, but of evidence. That is why we are calling for evidence today.
Sajid Javid (Bromsgrove) (Con)
11. What steps he is taking to promote the status of traditional craft industries.
Angela Smith (Penistone and Stocksbridge) (Lab)
14. Whether his Department plans to develop an industrial strategy; and if he will make a statement. [R]
The Secretary of State for Business, Innovation and Skills (Vince Cable)
Yes, I am developing an industrial policy, and I will continue to work closely with my ministerial colleagues on that important work. In speeches on 27 February and 6 March, I set out what that policy should be and where our future industrial capabilities should lie.
Angela Smith
In his leaked letter last week, the Secretary of State said:
“Where we know big investment decisions are going to be made…we need to put in place a strategy actively to plan how we will strengthen the supply chain”.
Does he therefore agree that a good start would be to work towards ensuring that the new Ministry of Defence tankers are built in Britain, not in Korea, and that our new nuclear reactors are made in Sheffield, not in France?
Vince Cable
A great deal of progress is being made in developing British supply chains that were whittled away to a disastrous extent with the decline of manufacturing under the last Government. If the hon. Lady looks at what is happening in the car and aerospace industries, for example, she will find that a lot of supply chains are coming back to the UK. As for her last point, on the nuclear industry, I think she is aware that the company that she represents is a regional growth fund recipient.
Tony Lloyd (Manchester Central) (Lab)
19. The Secretary of State will not know this, but a high-tech company in my constituency that spawned out of Manchester university was told by its would-be venture capitalists that unless it moved from Manchester to within the golden triangle of Oxbridge and London, it would not obtain finance. Will he look into that financial gap, which has been around for a long time and prevents the dynamic growth of industry, particularly in the northern regions?
Vince Cable
As it happens, I was in the hon. Gentleman’s constituency yesterday, and I met groups of businesses with similar concerns. He is right that there is a long-standing financing gap, particularly for small and medium-sized companies looking for risk capital. The business growth fund, which is a private sector initiative rather than Government money, is already beginning to fill that gap. It is headquartered in Birmingham but, I think, has substantial outreach into Manchester.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
15. What his policy is on the retention of post offices in villages.
Paul Blomfield (Sheffield Central) (Lab)
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 a key role in supporting the rebalancing of the economy and business to deliver growth while increasing skills and learning.
Paul Blomfield
As the Government have stumbled from the tuition fees debacle, through the uncertainty caused by core and margin and AAB, the reputational damage of international student visa policy, and the failure to develop policy on postgraduate education, will the Secretary of State admit—he has rightly identified this in other areas of Government policy—that the Government lack a compelling vision for UK higher education, and that that is behind today’s fall in our international reputational rankings?
Mr Chuka Umunna (Streatham) (Lab)
May I congratulate the Secretary of State on his leaked letter to the Prime Minister? I know he had some choice words to say about the Opposition, but the letter describes the Government’s action to promote growth as “frankly rather piecemeal”. I could not have put it better myself. When that was put to the Prime Minister last Wednesday, he said that the Secretary of State was wrong. I think it is grossly unfair that the Prime Minister should have the last word on this, so will the Secretary of State explain why the Prime Minister is mistaken?
Vince Cable
I am delighted the hon. Gentleman is focusing on that issue. As far as the leak is concerned, I am sure he is aware that it emerged from a Government Department—not mine—and was given to the Labour party, which gave it excellent publicity. If he ever finds himself out of a job, he is welcome to apply to be a press officer in my Department.
The letter had many choice words on Labour’s record in government, but it makes a strong case, which my colleagues in the Government share, and which I have set out in more detail in a couple of long speeches, for the need to get behind successful British companies and sectors, as we are doing through our training, our innovation policy and our support for supply chains. That will happen to a growing degree as we proceed.
Mr Umunna
Well, let us look at the support. The national loan guarantee scheme, also referred to as credit easing, has already been mentioned. Last October, Ministers said that they would urgently implement the scheme, yet they only submitted it to the EU Commission for approval on 10 February—more than four months after it had been announced. At our small and medium-sized enterprise lending summit in the House yesterday, RBS told us that the scheme would make little difference, that the benefits in the main would not be felt by SMEs and that the promised reduction in the cost of borrowing would be insignificant. If this is what the country’s largest bank is saying about the scheme, why should we believe it will make a blind bit of difference?
Vince Cable
The hon. Gentleman needs to wait until the Chancellor announces the scheme. It is a very, very large scheme, far exceeding other forms of Government support. The detail clearly needs to be got right, and we clearly need EU state aid approval, but I believe, as does the Chancellor, that it will make a significant difference to the terms on which small companies can borrow. He should be a little patient and wait for the Budget next week.
Gavin Williamson (South Staffordshire) (Con)
T5. Many people in South Staffordshire are concerned when they see the directors of large public limited companies awarding themselves large pay increases despite the fact that the companies are not performing. Will my right hon. Friend assure my constituents that the voice and votes of shareholders will be listened to when it comes to remuneration packages?
Vince Cable
Yes, that is absolutely the direction in which the Government are going. Following the Prime Minister’s announcement that we intend to proceed on binding votes, I announced a set of detailed proposals that will give shareholders a significantly enhanced role in the setting of pay and which will, I hope, have the moderating effect that the hon. Gentleman described.
Andrew Gwynne (Denton and Reddish) (Lab)
T6. I am still receiving numerous complaints from small businesses across Denton and Reddish facing problems accessing finance for their viable business propositions. Given that the economic forecasts are continually being revised downward and the quarter 4 gross domestic product figures are showing a contraction, will the Secretary of State now act and get the banks lending to viable small businesses in my constituency?
Ann McKechin (Glasgow North) (Lab)
Given that UK companies are sitting on some of the highest levels of cash reserves of any western nation, what steps will the Secretary of State’s Department take to release those funds for the much-needed investment in British industry?
Vince Cable
Perhaps I should say that because of the problem of large piles of liquidity in the big corporates—this is not a new problem: it has been building up over the last decade—I asked Tim Breedon, who was formerly the chief executive of Legal and General, to look at practical ways of dealing with it, such as building up supply chain finance and new forms of trade credit. It is a serious problem, but we need business to invest, and the cash is there in many companies.
Stephen Mosley (City of Chester) (Con)
T8. I was reassured earlier to hear my right hon. Friend the Secretary of State describe the work that he is putting in with GM to help protect the future of Vauxhall at Ellesmere Port. In his discussions with GM, will he remind the company that Ellesmere Port is one of its most productive plants in Europe and ideally placed to build its next-generation cars, such as the all-electric Ampera?
Vince Cable
My hon. Friend touches on the core argument. We are talking about a very productive plant, which reflects well on the management, and also on the labour force, who have been consistently co-operative. Currently the plant does not operate at full capacity; the issue for the company is how to use that production in a way that minimises excess capacity. We are confident that the UK has a strong case in ensuring that existing production—but also new models, as he said—is secured in Ellesmere Port.
Huw Irranca-Davies (Ogmore) (Lab)
The Business Secretary has just described himself as being under attack from left and right on his proposals to weaken employment protection laws. Where on that spectrum would he put Fiona Dawson, the managing director of Mars UK, who has said:
“I would like to see something that makes it easier for the workforce but it’s got to be fair. So I would not support employees’ rights being removed. I think we’ve got to make sure that it is fair, not just for businesses but for employees as well”?
How does he respond to that?
Vince Cable
It is precisely for that reason that we are having a call for evidence, and the company that the hon. Gentleman has mentioned and others can contribute to it.
George Eustice (Camborne and Redruth) (Con)
There is currently complete inequality between the bargaining position of small businesses and that of their banks. Many small businesses find themselves threatened with receivership unless they concede to higher interest rates or new charges. What can the Government do to rebalance the law in favour of enterprise?