Oral Answers to Questions

Vince Cable Excerpts

Thursday 23rd January 2014 Commons Chamber

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

14. What steps he is taking to encourage more people to become engineers.

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

The Government are working with employers, professional bodies and higher and further education institutions to implement the Perkins review of engineering skills and boost careers in engineering, particularly for women. In September we announced a £400 million boost for STEM—science, technology, engineering and maths—teaching in universities.

[Stephen Metcalfe]

In a recent Science and Technology Committee report “Educating tomorrow’s engineers”, we recommended that

“learned societies, professional engineering institutions and trade bodies put an obligation on their members to systematically engage in promoting engineering and technology as a career through a structured programme of educational engagement.”

What progress, if any, has been made in making that come to fruition?

[Vince Cable]

There is a recognition of the seriousness of the shortage of engineers, and we are trying to address that in a variety of ways. On the particular programmes that my hon. Friend has described, we are working with the professional associations on work experience for students and industrial placements for teachers, because we have to change the perceptions of young people in schools.

[Mr Turner]

I welcome my right hon. Friend’s initiatives to encourage more people into engineering. I founded the Isle of Wight Technology Group to help engineering and technology companies work together on training, recruitment and other issues. Will he say how many new engineers are being grown on the island, and will he come to the Isle of Wight to see for himself the good work that technology companies are doing?

[Vince Cable]

I cannot give my hon. Friend a precise number, but I know that a depth of engineering talent is arising from the island’s successful companies, both in the maritime sector and in aerospace. We want to build on that, and I would be absolutely delighted to meet him and his engineers on the Isle of Wight—I always enjoy a walk on Tennyson down.

[Oliver Colvile]

As my right hon. Friend knows, Devonport dockyard is the only naval dockyard in the country that refits and refurbishes our nuclear submarines. How have the Government helped—and how can we help—to make sure that we protect Britain’s nuclear engineering skills base and ensure that the work force are not lured away to Hinkley C, just up the peninsula?

[Vince Cable]

My hon. Friend is right to say that in an environment where there is an acute shortage of professional engineers and craftsmen, there is a tendency to poach skills. We see that happening in other sectors, like the motor car industry, oil and gas and so on. The answer is to produce more engineers, and he will be aware that in his constituency, or certainly in the city of Plymouth, we have the 600-place university technology college, which is growing with support from the Government. That is a very positive step forward, and I am sure he will be pleased with it.

[Richard Burden (Birmingham, Northfield) (Lab)]

Does the Secretary of State agree that today’s good news from the automotive sector should encourage more people to become engineers, but that there is still a real issue to address to ensure that the automotive supply chain gets the engineers it needs and that young people are encouraged to go into it? Does that not involve doing more to ensure that training meets the needs of the supply chain and that small businesses in that sector get the investment they need, which requires a different approach from finance houses?

[Vince Cable]

The hon. Gentleman is right to say that the key challenge now faced by the car industry, which is a great success story, is to progress the success of OEMs—original equipment manufacturers—which are expanding, down through their supply chains, which were hollowed out in earlier years. We are addressing that issue through the Automotive Council and the industry strategy. That is progressing well, but it does need a great deal of support for the training base and the training of engineers, which is what we are doing through our apprenticeship programme.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

Young people across Plymouth are telling me that they feel as though they are little more than walking pots of money when it comes to careers advice and that schools are almost harassing them at times to keep them in school. That obviously militates against some of them going to do engineering apprenticeships, as my neighbour the hon. Member for Plymouth, Sutton and Devonport (Oliver Colvile) has pointed out. What more can the Secretary of State do to set up an independent careers advice arrangement, so that these young people can get broader advice, not specific and closed advice from their schools?

[Vince Cable]

Yes indeed. The all-age careers service that we have put in place is now generally acknowledged to be giving successful advice through the age range. On schools, we recognise that there is an issue to address on the career paths of the non-academic—the more vocationally trained. We shall shortly be issuing guidance to schools on how to access independent advice.

[Jim Shannon (Strangford) (DUP)]

The aerospace industry has shown marked improvement in the past few months. Just last week, Magellan Aerospace in Belfast announced a new job contract through the Prime Minister, and jobs and opportunities were created. Is it now time for higher education and for industry, particularly aerospace, to work together to make sure that those jobs are taken by young people from universities and colleges at this time?

[Vince Cable]

I am sure that the hon. Gentleman is absolutely right. I was in Belfast recently and met a combination of Northern Ireland universities and industry. They are working together and realise that a recovery is taking place, despite the problems of the traditional industries around Belfast. Such work requires the kind of collaboration he has described.

[Sir Peter Luff (Mid Worcestershire) (Con)]

Will the Secretary of State reassure me that he regards the excellent John Perkins review of engineering skills as the irreducible minimum necessary to address the urgent shortages in engineering skills in our country, and that his Department will remain open to ideas better to market engineering to young people, and to address the appalling gender stereotyping that is frustrating so many women’s ambitions to get into engineering?

[Vince Cable]

Yes, it is an exceptionally good report. The challenge is a massive one. There is an acute shortage of engineers, and the problem is particularly serious among women. I believe that something in the order of one in 10 professional engineers is a woman, and about one in 20 in advanced apprenticeships. We are actively seeking to address that with the professional institutions.

[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I too wish to ask the Secretary of State about the engineers of the future. The mismanaged free-for-all that gave private students unfettered access to the student loan system has now cost his Department so dear that big cuts are being discussed. On top of the huge cuts for educating 18-year-olds in college, we now hear rumours that the student opportunity fund that helps poorer future engineers will be completely axed. Will the Secretary of State take this opportunity to promise the House that he will not sacrifice social mobility to pay for the chaos in his Department’s budget?

[Vince Cable]

The right hon. Gentleman could perhaps do a little better than rely on rumours that have very little foundation. The substance of the matter is that in the autumn statement, we were committed to additional investment of £400 million in STEM teaching to provide modern facilities that were neglected during the years he was Financial Secretary to the Treasury.

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[Alex Cunningham (Stockton North) (Lab)]

7. Whether net lending to businesses by banks has risen in any of the last 24 months.

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

The answer is yes. The most recent data from the Bank of England show that net lending to small and medium-sized enterprises was positive in March, June and November, and the Bank of England’s most recent “Trends in Lending” and “Credit Conditions” reports show that confidence is beginning to return, helped by interventions such as the British business bank.

[Alex Cunningham]

According to the chamber of commerce, unemployment in the north-east has gone up by 1,000 in the past quarter and by 16,000 in the past year, of whom 13,000 are women. We agree that small and medium-sized businesses should be driving the economy up and unemployment down, but I am told that many in my region see confusing Government schemes and the banks as failing to give them the help and resources they need. What specific things will the Secretary of State do to help people in the north-east and let our people share in the so-called upturn?

[Vince Cable]

Anybody who looks at yesterday’s employment figures will realise that we are in a very positive trend on employment—far in excess of what was predicted. Specifically in relation to the north-east, the hon. Gentleman will know that the main mechanism the Government use to support jobs and companies is the regional growth fund, and I think that the north-east has received more regional growth fund support than almost any other part of the country.

[Mr Peter Bone (Wellingborough) (Con)]

Does the Secretary of State agree that as businesses expand and get more sales, they generate more cash, so we would not necessarily expect net lending to go up?

[Vince Cable]

That is certainly a factor. Indeed, many individual companies—quite apart from the banks—have become highly risk-averse, but I do not doubt that the supply of credit is a serious problem. That is why we have made interventions, such as the British business bank, that are already making a significant difference.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

19. May I tell the Secretary of State that in Yorkshire, too, small and medium-sized businesses in particular find it difficult to borrow money from conventional banks, which is why they increasingly look to crowdfunding for finance? Has he seen that Nicola Horlick has set up a new organisation to get into the crowdfunding market, because she too believes that conventional banks do not respond fast enough or efficiently enough?

[Vince Cable]

The hon. Gentleman is quite right. Indeed, one of the more encouraging signs over the past year is that unconventional forms of lending, such as crowdfunding, are becoming increasingly common. The Government are supporting two of the main schemes that operate on a peer-to-peer lending basis. Lending is expanding very rapidly in that sector for the small and medium-sized companies that need it.

[Julian Sturdy (York Outer) (Con)]

8. What support he is providing to the life sciences sector.

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[Sir Tony Baldry (Banbury) (Con)]

15. What his policy is on the national minimum wage.

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

Our aim is to maximise the wages of the low paid without damaging their employment prospects. We fully support the work of the independent Low Pay Commission in framing the pay rate recommendations for 2014. I have also asked it to consider the conditions that would be needed for faster, above inflation, increases in the national minimum wage.

[Andrew Griffiths]

I warmly welcome the Chancellor’s announcement of his support for raising the national minimum wage, which would be of huge benefit to the lowest paid in Burton and Uttoxeter, and across the country. Does the Secretary of State accept that it would also place extra costs on business, particularly on small business? Will he consider what could be done to reduce business taxes and regulatory burdens to help those businesses pay for an increase in the minimum wage?

[Vince Cable]

Yes, of course we are conscious of the extra cost that would fall on business. That is why the Low Pay Commission tries to make a balanced judgment between the impact on employment and the increase in earnings for workers. It must be left to make its judgments and its independence must be respected. On the tax implications, given that the Chancellor is now heavily involved in this proposal and supportive of it, I am sure that he will be helpful on that front as well.

[Sir Tony Baldry]

Some 14 million people are on the minimum wage, most of whom work in retail, hospitality or cleaning. They earn just over £12,000 a year and are hard-working people. It is rightly the ambition of the coalition to make work pay more than benefit. Does my right hon. Friend imagine that anyone thinks that an above-inflation increase in the minimum wage would not pay for itself and should not be available to help those who are working hard?

[Vince Cable]

My right hon. Friend reflects the thinking that framed the advice I gave to the Low Pay Commission. Indeed, such thinking is not merely attractive in that it gives an incentive for people to work and improve their earnings, but it has positive implications for public finances.

[Heidi Alexander (Lewisham East) (Lab)]

The Government would have us believe that they are now great supporters of the national minimum wage, yet we know that many sitting on the Government Benches today voted against it in 1997. If the national minimum wage is so important to the coalition, why have the Government allowed its value to fall by 5% since the election?

[Vince Cable]

The real value of the minimum wage started to fall under my predecessors in the wake of the financial crisis, and on each occasion, I, like my Labour predecessor, have followed the advice of the Low Pay Commission. The levels that have been set reflect that independent advice.

[Lyn Brown (West Ham) (Lab)]

13. What recent estimate he has made of the number of female entrepreneurs.

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[Karen Lumley (Redditch) (Con)]

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

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

My Department is concerned with the promotion of growth, recovery and a rebalanced economy.

[Karen Lumley]

Will my right hon. Friend join me in congratulating Bee Design Consultancy, which I visited last Friday in my constituency? In the past few years, it has gone from having two employees to 19, and it now exports its skills all over the world, recently to Lamborghini in Italy. I invite him to come to Redditch to visit the company next time he is in the west midlands.

[Vince Cable]

I would be delighted to come to my hon. Friend’s constituency and share that success. It is not just about mainstream car producers, but specialists, as she describes.

[Mr Chuka Umunna (Streatham) (Lab)]

The Secretary of State talked about the importance of strengthening the national minimum wage, which Labour established in office to secure a fairer deal for workers. With that in mind, does he agree that for an employer to mislead workers into purchasing personal accident insurance, the charges for which would take workers’ pay under the minimum and the purchase of which is not necessary given employers’ own insurance cover, would be completely indefensible and possibly unlawful?

[Vince Cable]

Yes, I agree that that would be indefensible and I think it is unlawful. I have been advised that this practice has happened. The relevant body, the employment agency standards inspectorate, is investigating individual cases and will take enforcement action. If it proves to be a widespread practice, there will clearly be a case for a broadly based inquiry.

[Mr Umunna]

I asked the question because it is precisely what employment agencies employing workers on, or close to, the minimum wage appear to have been doing. I have been passed evidence that suggests Blue Arrow, Staffline, Acorn, Taskmaster, Randstad and Meridian, employment agencies employing more than 100,000 workers, have been mis-selling personal accident insurance to workers which they arguably do not need and from which those agencies have been profiteering. There is even a company, Gee 7 Group, which specialises in putting together these dubious arrangements for agencies. Further to my questions on this topic since October last year, will the Secretary of State now commit to holding a full inquiry into this shabby practice?

[Vince Cable]

I will commit to ensuring that we have proper enforcement procedure. The hon. Gentleman has listed more companies today. We will investigate them and that may well merit a more broadly based inquiry. I will say that the information he has made available, which I think has already been publicised, depends on the information that has been obtained from a whistleblower in a company. The Government’s reforms will strengthen the rights of whistleblowers and put them and others in a stronger position. The hon. Gentleman has identified a legitimate case of abuse and I recognise that we have to deal with it.

[Peter Aldous (Waveney) (Con)]

T2. Will the Minister outline the work the Government are doing to increase the number of engineers who will be needed to work in the energy sector in Suffolk and Norfolk, and to build on the excellent work being done by Lowestoft college?

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[Ian Lavery (Wansbeck) (Lab)]

T4. Blacklisting is a scourge of any civilised society. Will the Secretary of State guarantee to the House that the confidential documents currently being withheld by the Government relating to the Shrewsbury 24 dispute in 1973 do not include extensive details relating to individuals who have been blacklisted and the companies operating this very sharp practice?

[Vince Cable]

We have debated this issue in the House before—I think the hon. Gentleman spoke on it, and I responded—and we take it very seriously. I have had conversations with the Information Commissioner to ensure that the injustices of the past are properly dealt with, and as I have said to the hon. Gentleman and the Opposition spokesman, if Members have more concrete evidence that has not been properly investigated, they should bring it directly to me.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

T3. Suppliers to top-tier Government contractors still complain that payments made under the prompt payment code are not forthcoming. What more can the Government do to improve the situation and release billions of pounds back into the economy to support our long-term economic plan?

[Mr William Bain (Glasgow North East) (Lab)]

T7. Will the Secretary of State confirm that business investment has flatlined over the last year and that this is one of the major causes of Britain’s worsening productivity problem? What are he and the Government going to do about it?

[Vince Cable]

As everybody acknowledges, business investment has been badly hit since the financial crisis, but with the economy rapidly recovering, I think we all expect—and the surveys suggest—that there will be a movement forward in terms of business investment, once capacity has been fully utilised.

[Bob Blackman (Harrow East) (Con)]

T5. The number of students coming from India has dropped by 25% since the new restrictions were introduced, which means we have fallen below the United States as destination of choice. What is my right hon. Friend doing to ensure that we attract the brightest and the best to our universities for the best education in the world?

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[Ann McKechin (Glasgow North) (Lab)]

T8. The Financial Times this morning quotes a Treasury spokesman as saying that an interest rate rise is “not something we are worried about” and a “sign of success”. Does the Secretary of State concur with that view?

[Vince Cable]

Fortunately, my many responsibilities do not include the setting of interest rates. I am happy to leave that to the Governor of the Bank of England, who has made an admirable impression.

[Harriett Baldwin (West Worcestershire) (Con)]

T6. Did the science Minister hear the excellent Radio 4 programme about Malvern’s cyber-security hub, and will he clear his diary to come and open the private sector-led national cyber-skills centre in Malvern?

[Mrs Mary Glindon (North Tyneside) (Lab)]

T9. Is the Secretary of State aware that all the new oil and gas platform construction projects for this year have been either cancelled or postponed, which will have a devastating effect on employment in my constituency and others in the north-east, as well as those in Scotland? Will he, together with the Secretary of State for Energy and Climate Change, take immediate steps to address this matter?

[Vince Cable]

There is an enormous amount of investment in the North sea—about £13 billion last year, which was a big increase. One of my and my colleagues’ objectives, through the industrial strategy, is to ensure that as much of the supply chain as possible originates in the UK, and we are working with the industry on that. I frequently meet oil companies and fabricators to try to progress that.

[Stephen Lloyd (Eastbourne) (LD)]

I wholly support the Government’s move to increase the education leaving age to 18, but while the Department for Education budget is protected, the further education budget, which comes under the Department for Business, Innovation and Skills and which will now be educating far more people up to 18 than schools, is not. This will put a huge strain on FE budgets. Will the responsible BIS Minister talk to the Secretary of State for Education to ask for assistance?

[Jack Dromey (Birmingham, Erdington) (Lab)]

Queen Victoria was on the throne when the Dunlop Motorsport factory first produced wooden wheels and then rubber tyres in Erdington. Now, 125 years of history and 300 highly skilled jobs are at risk. Jaguar Land Rover needs the land for its welcome expansion. Birmingham city council has identified an alternative site about three miles away. But the global board, based in Ohio, has yet to commit to Birmingham and Britain—with only nine months left before the lease runs out. In thanking the Secretary of State for the welcome steps he has already taken, may I ask whether he will convene a top-level meeting with Goodyear Dunlop, involving both him and me, so that we can get a decision made that a great piece of our manufacturing history remains part of a great manufacturing future in this country?

[Vince Cable]

I am well aware of this issue and its importance to British manufacturing, and, indeed, to Birmingham. I would be happy, as I am sure would the Minister of State, to meet the key people in order to make sure that we get the right decision.

[Mr David Nuttall (Bury North) (Con)]

Given the enthusiasm of both the public and employees for buying shares in Royal Mail, will the Secretary of State look at what other assets in the public sector could be successfully transferred to the private sector?

[Vince Cable]

Asset sales are an important part of Government economic policy. They have been very successful in raising cash and enabling the Government to invest more than would otherwise be the case. We approach this on a practical basis, aiming to get value for money for the taxpayer.

[Joan Walley (Stoke-on-Trent North) (Lab)]

Will the Secretary of State update us on his latest decision on article 7 of the proposed EU consumer products safety regulations on origin marking, which, if agreed, would mean that quality ceramics made in Stoke-on-Trent would be labelled “Made in the UK”? Is it not time that we put an end to misleading consumer product marking?

[Vince Cable]

I thank the hon. Lady and her colleagues from the potteries who have been to see me about this specific issue. Apparently, there was a meeting of what I think is called COREPER on Monday, but no agreement was reached. There is a divided view on the role of mandatory regulation to deal with this problem. I take a close interest in this matter, and I will follow it up.

[Mr Philip Hollobone (Kettering) (Con)]

For the 150,000 posties who are now shareholders in Royal Mail, will the Secretary of State or the Post Office Minister tell us what the average value of their individual shareholdings was at flotation and what their average value is now?

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[Mr Peter Bone (Wellingborough) (Con)]

On the Secretary of State’s undoubtedly enjoyable trip to meet my hon. Friend the Member for Redditch (Karen Lumley), will he break his journey in Wellingborough so that I can show him the success of local businesses? More importantly, this would not cost the taxpayer a penny because both Wellingborough council and East Northamptonshire council have free car parking, which encourages local business. If possible, I look forward to seeing him soon.

[Vince Cable]

I should be delighted to go to Wellingborough. Indeed, I should like to make the visit a political one as well, and, on behalf of my Department, to express my appreciation of someone who has given so much support to the coalition. [Laughter.]

[Paul Blomfield (Sheffield Central) (Lab)]

Last year, Sheffield Hallam university received £6.9 million as part of its share of the student opportunity fund. That not only helped it to recruit 30% of its undergraduate intake from low-income households—a commendable achievement—but to engage in critical retention work with the most disadvantaged learners. Yesterday, in the Business, Innovation and Skills Committee, the Secretary of State agreed with me that the fund’s work would be damaged if its resources were cut. Can the Minister reassure the House that that will not happen?

[Julian Smith (Skipton and Ripon) (Con)]

As the Prime Minister’s recent excellent trip to China has shown, there are phenomenal opportunities for Britain to trade with the Chinese. May I urge the Department to continue to lobby for the simplification of visas for Chinese visitors and entrepreneurs?

[Vince Cable]

Yes, and we will do so. I understand that my colleague the Home Secretary has already introduced a revamped system which is much faster and which gives those who have secured British visas speedy access to the Schengen countries. We are very conscious of the importance of Chinese visitors, and we will do our best to make it clear that they are welcome.