Oral Answers to Questions

Debate between Vince Cable and Adrian Bailey

Thursday 8th January 2015 Commons Chamber

[Vince Cable]

That is a rather creative stretch to the low-carbon economy, but specifically on postgraduate education, the hon. Gentleman will be aware that we have just introduced a postgraduate loan scheme for the first time.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

6. What steps he is taking to increase the number of apprenticeship places through Government procurement.

AstraZeneca (Pfizer Bid)

Debate between Vince Cable and Adrian Bailey

Tuesday 6th May 2014 Commons Chamber

[Vince Cable]

I am well aware of the very constructive role the hon. Lady played when the original redundancies were announced. Indeed, despite the very large job losses, there is still a significant presence on the site to which she refers. The securing of that continued presence, which is substantial, and decision making would be a key part of any future discussion we have with the company.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I agree with the Secretary of State that we must learn the lessons of the Kraft-Cadbury takeover. Does he agree that one of those lessons is that we cannot necessarily take the assurances of the takeover company literally? If the evidence from the Select Committee investigations demonstrates that we may not be able to do that, will the Secretary of State undertake to ensure that the Government will intervene?

Royal Mail

Debate between Vince Cable and Adrian Bailey

Tuesday 1st April 2014 Commons Chamber

[Vince Cable]

I think that the hon. Gentleman misunderstands the basis on which the valuation was made. It was based on a sampling of 5,000 potential buyers among institutional investors and on a comparison with similar privatisations, such as that of the Belgian post office. The process was rigorous and it had nothing whatever to do with the undue influence he describes.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The fact remains that the key determinants of the pricing were a select group of banks, acting as advisers to the Government or in the book-building process. From the perspective of the taxpayer, the sight of banks advising the Government on a price and then buying shares at that price and selling them at a profit or, in some cases, subsequently buying them at higher prices absolutely stinks. Will the Secretary of State assure us that, in any future privatisation, no bank that is involved in advising the Government on the price level will be allowed to buy shares?

[Vince Cable]

The Government’s advisers were from Lazard, which had no financial incentive whatever in the sale.

Pub Companies

Debate between Vince Cable and Adrian Bailey

Tuesday 21st January 2014 Commons Chamber

[Vince Cable]

The simple one-word answer is no, but we will wait to hear the Government’s response.

[Mr Bailey]

Will the Secretary of State be bringing forward legislation on this matter before May 2015?

[Vince Cable]

As I have said, I cannot anticipate exactly what the Government will say in their official response, but the whole purpose of the consultation was to seek views on legislative action, and our response will be built around that set of questions.

Oral Answers to Questions

Debate between Vince Cable and Adrian Bailey

Thursday 5th December 2013 Commons Chamber

[Vince Cable]

The hon. Gentleman is right that the building societies have a crucial role, primarily of course in mortgage lending, which is their traditional business, but some of them are moving into small business lending and that is very welcome. One of the reasons why the Chancellor and I did not support the recommendations of the parliamentary commission on leverage ratios was to protect building societies and enable them to expand.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Given the failure of successive well-intentioned but ineffective Government schemes to boost lending for small businesses, including £78 million of unallocated resources for the funding for lending scheme, will the Secretary of State outline what extra measures he will take to ensure that the business bank succeeds where other schemes have failed?

[Vince Cable]

The bank is already succeeding. As I said to the right hon. Member for East Ham (Stephen Timms), there has been a very big increase in the lending being made available under the existing schemes and a big growth in equity-related activity. I think he will find that, as the business bank moves forward, we will use the £1.25 billion of new capital from the Treasury to do exactly what it was designed to achieve. I am very positive about the bank’s future.

Oral Answers to Questions

Debate between Vince Cable and Adrian Bailey

Thursday 24th October 2013 Commons Chamber

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

What assessment has the Secretary of State made of the impact of the funding for lending scheme on investment in small businesses?

[Vince Cable]

The funding for lending scheme has had a very significant impact on the mortgage market. It has had a much lesser impact on small business, but it has recently been adapted, and I believe it has been used by some of the new competitor banks such as the Aldermore. We certainly welcome that.

Royal Mail

Debate between Vince Cable and Adrian Bailey

Wednesday 10th July 2013 Commons Chamber

[Vince Cable]

Absolutely. That is the fundamental of the universal service obligation, which can be changed only by an affirmative vote of this House.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The Minister acknowledged the importance of the contractual relationship between Royal Mail and the sustainability of the post office network, and in a previous answer he acknowledged the issue of elderly sub-postmasters retiring. What assessment has he made of the viability of the post office network, given the uncertainty that the privatisation of Royal Mail will create in the minds of people who might take on post offices when sub-postmasters retire?

[Vince Cable]

As I explained, there is currently a 10-year agreement in place, which takes us into the Parliament after next. Few other businesses operate with that degree of regulatory certainty.

Oral Answers to Questions

Debate between Vince Cable and Adrian Bailey

Thursday 7th February 2013 Commons Chamber

[Vince Cable]

No, it certainly is not a silver bullet but it will make a significant difference in increasing diversity in the system, in providing wholesale financing for some of the new entrants into the market, and in making Government support more concentrated and easy to access. It will be an important contribution, and the plans are already under way. The expert committee met for the first time a couple of days ago, and we are already looking at products and projects that hopefully will provide some £300 million, geared substantially with private money, over the course of this year.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Banks tell me that small businesses will not ask for money because of their lack of confidence in a flatlining economy. Small businesses tell me that banks will not lend to them because of the risk factor and the desire to increase their capital balances. The Government say they are going to introduce a business bank. When will the business bank be up and running to address these problems, and in what different way will it operate to overcome them?

[Vince Cable]

The business bank has already been organised and as I just mentioned, the expert committee met for the first time a couple of days ago and its products are already being prepared. As the hon. Gentleman will know, we have to go through the state aid process before it can operate fully. In the meantime, it can operate within constraints—pari passu lending, for one thing—and I can assure him that it will make a significant contribution.

Oral Answers to Questions

Debate between Vince Cable and Adrian Bailey

Thursday 20th December 2012 Commons Chamber

[Vince Cable]

We are pursuing this not through legislation but through practical action and we are working with the developers’ forum to try to ensure that at least 50% of supply chain work comes back to the UK. We cannot do that unless we have the capacity, which is why we have established the catapult centres in the north-east and Glasgow to develop basic technology as well as the six renewable engineering centres, which will develop our engineering capacity.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

A small business in my constituency conveyed to me that it has considerable doubts about the implementation of the green deal and is therefore reluctant to invest in training for new employees and to make any other investment that might be appropriate to meet the demands of the green deal. What reassurance can the Minister give that the green deal will be implemented and that those opportunities will be there for small businesses?

[Vince Cable]

I know that my colleague the Secretary of State for Energy and Climate Change attaches enormous importance to the green deal. It is, as I understand it, completing its state aid clearance in Brussels. When it is launched there will be a major incentive for people to improve their homes and to develop jobs on the back of that.

Industrial Strategy

Debate between Vince Cable and Adrian Bailey

Monday 10th September 2012 Commons Chamber

[Vince Cable]

My hon. Friend is right; we need to make that distinction. There are many examples. He chose the automotive sector, where Britain is now performing extraordinarily well. For the first time in a generation we have a trade surplus in the automotive sector, with £6 billion in new commitments of investment, but there are many other sectors whose experience also serves to illustrate the wisdom of Government and the private sector sitting down together, and one of them is the space sector, as my colleague who represents higher education, the Minister for Universities and Science, knows very well. Britain now has one of the most outstanding space sectors in the world, and a lot of that is a product of sensible collaboration.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I broadly welcome the Secretary of State’s comments, which in many respects are long overdue. However, can he reassure me, and organisations such as the Engineering Employers Federation, that the lack of political will of which his Government accuse past Governments on this issue will now change? What reassurances can he give us that the political direction will change, and that the new political backing will ensure this policy is rather more successful than the economic plan for growth introduced last year?

[Vince Cable]

There is strong political backing for this. The hon. Gentleman refers to various industrial groups, and I am well aware that the Engineering Employers Federation, and, indeed, the CBI, have called for an industrial strategy of this kind. I will be working very closely with them and the other business groups.

Directors’ Pay

Debate between Vince Cable and Adrian Bailey

Wednesday 20th June 2012 Commons Chamber

[Vince Cable]

As the hon. Gentleman knows in his important role as Chairman of the Treasury Committee, a separate set of regulations introduced by the Financial Services Authority deals with the link between the types of pay package that are introduced and systemic risk. Excessive bonusing has undoubtedly had an effect in the past, and as a result of the experience of the financial crash, those regulations have been tightened. Banks, as public limited companies, will be governed by the new regulations, and I imagine that after their experiences shareholders in our leading banks will want to ensure that forward-looking pay policies take proper account of the systemic risk of their institutions.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I broadly welcome the Minister’s statement and I welcome his agreement to appear before the Select Committee on Business, Innovation and Skills on 28 June to be further questioned on it. May I probe him on his comments about the disclosure levels of institutional investors? Currently, only 15% of asset management companies reveal their voting behaviour at shareholder annual general meetings. In the light of his statement, will he consider introducing legislation to ensure that that becomes 100%?

[Vince Cable]

I have already indicated in my statement that we are examining disclosure levels. There is an encouraging trend towards disclosure, and as the hon. Gentleman knows, the big weight of votes comes through the big pension and insurance companies. I have said that we will consider further measures if the current ones do not lead to the right trajectory, and his point is a useful one.

Office for Fair Access

Debate between Vince Cable and Adrian Bailey

Monday 20th February 2012 Commons Chamber

[Vince Cable]

I should congratulate the hon. Gentleman as a co-author of this very good report on fair access—on removing barriers and realising potential. I repeat that I agree with much of what it says. The problem that the authors of the report have produced is, I think, the creation of an artificial binary distinction by claiming that access to universities is entirely an issue of schools’ policies as opposed to the admissions policies of universities. Clearly, there is an element of both, and a great deal needs to be done to raise performance levels in schools, as the hon. Gentleman and his co-authors have argued, but equally there is an obligation on universities, as this excellent report says, to help raise aspirations by improving the quality of choices of A-level subjects and making other such advances.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The Secretary of State is correct to say that issues arising from Professor Ebdon’s interview were raised in the Select Committee on Business, Innovation and Skills, and those issues will have been raised with him. However, the clear political dividing line in the subsequent voting demonstrates that a political perspective was involved in the final decision. I think that is regrettable; it is the first time my Committee has ever produced a report that was not founded on a unanimous, consensual basis. Will the Secretary of State assure me that, contrary to the press speculation, there was not some sort of back-room deal to offset an allowance for early repayment of tuition fees in return for ratifying this appointment?

[Vince Cable]

I thank the Chairman of the Select Committee for his role: he has made his own views clear while protecting the integrity of his Committee, which is his duty in Parliament. As far as this so-called deal is concerned, there is no such deal. We have made it clear for some time that we intended to listen to the results of the consultation on prepayment. This consultation was absolutely clear that this was not an attractive way forward, so we have pursued other ways of assuming a fair and progressive system of graduate contributions.

Executive Pay

Debate between Vince Cable and Adrian Bailey

Monday 23rd January 2012 Commons Chamber

[Vince Cable]

My right hon. Friend is right to stress the central role of shareholders and to remind us about the conditions according to which the head of RBS was appointed and the contract negotiated. Of course, the problem is not just with pay; we are now also having to consider the problem of knighthoods that were awarded for appalling behaviour in British banking.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

A lot of what the Secretary of State has said will have cross-party support. The Government are backing employee share ownership, the logical outcome of which is employees on the board. In view of that, and his rejection of the automatic right of employees to be on the board, for the sole reason that a lot of companies have foreign employees, is the Secretary of State really trying to address this issue and to find a way through? Although it may be difficult in practice, it is very good in principle.

[Vince Cable]

There is no logic to suggest an automatic carry-over from worker shares to representatives on boards. Those are separate issues. I simply urge the hon. Gentleman to look back on my comment about the use of information and consultation arrangements. There is a regulation that came from the European Union— one of its better ones—back in 2005, which employees in many companies could use to engage directly in conversations with their management about their pay. Far too few people have taken advantage of that. I hope that he and others will encourage them to do so.

Oral Answers to Questions

Debate between Vince Cable and Adrian Bailey

Thursday 8th December 2011 Commons Chamber

[Vince Cable]

I was in the west country just over a week ago looking at the aerospace industry, which is a considerable success story. My hon. Friend is quite right that one of the constraints is the need for skilled manpower, which is why in our rapidly growing apprenticeship programme we are setting aside funding specifically for advanced apprenticeships in engineering skills of the kind that firms in his constituency need.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

There is an increasing body of evidence to show that small manufacturing companies are not only having difficulty in accessing finance to expand but are discouraged from applying for it because of a lack of confidence in the ability to sell any increased production. What is the Secretary of State doing to persuade the Chancellor that the time is right for a stimulus in the demand side of the economy as well as provisions for the supply side?

[Vince Cable]

A stimulus to demand is coming from two sources. One is rapidly growing export markets in emerging markets, where our export growth is very substantial. Manufacturers, including small and medium-sized enterprises, are taking a substantial part of that. In addition our monetary policy, which is supported by the Bank of England, with low short and long interest rates, quantitative easing and credit easing, is supporting demand.

Economic Growth and Employment

Debate between Vince Cable and Adrian Bailey

Wednesday 23rd November 2011 Commons Chamber

[Vince Cable]

I will describe in more detail, as will the Minister for Further Education, Skills and Lifelong Learning, some of the initiatives that we are taking on apprenticeships, for example, which reflect real imagination and real change.

Let me try to respond to some of the points that the hon. Member for Streatham made. First, he wholly misunderstands what is happening with the regional growth fund. More than half the projects are under way in the first wave of the regional growth fund. The factories have been built and the jobs are being created. Because of due diligence, the disbursement—I have had this confirmed—is still taking an average of three to six weeks. I am happy to pursue the individual cases that the hon. Gentleman raised. As I understand it—I may be wrong—the case that he dwelt on at some length is the result of the applicant having radically changed the status of their application, and we will happily look at that. However, I am not going to take lectures on the disbursement of Government money. I do not know whether he is aware of this, but the previous Government set up a £5 billion trade credit insurance scheme which, after two years, has managed to disburse £81,000. The regional growth fund is proceeding as predicted and suggested by Lord Heseltine and his team. We are following those processes. The factories are being built and the jobs are being created, and that is what matters.

The hon. Gentleman challenged me on procurement. I have been to Derby and talked to the people involved. Obviously, we are very concerned about what has happened in that case. The problem with procurement is that for a decade or more the public procurement policies pursued in this country were unbelievably short-sighted and legalistic. In the case of the Thameslink contract, we inherited a contract procedure based principles that did not allow for the wider effects on the British economy. However, that particular decision has been made. I have made it absolutely clear, and my right hon. Friend the Minister for the Cabinet Office made it clear two days ago, that we are going to approach public procurement in a different way. We are going to do it strategically and take account of supply chains. Of course we will operate within the law and will not be protectionist, but a lot can be done through public procurement that we are now going to pursue. My only question is why on earth Labour Members did not do this when they were in office if they care so much about it.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Is the Secretary of State now in a position to give me an answer that he could not give when I questioned his departmental report a couple of weeks ago—namely, exactly how many jobs have been created by the regional growth fund so far?

[Vince Cable]

No, I cannot do that, because the projects are under construction. When they are fully completed and fully staffed and their supply chains are established, it will be possible to come up with a meaningful number.

The third area of criticism and questioning of the hon. Member for Streatham related to the banks. The motion recycles the idea of a bank bonus tax, so let us go over what that involves. The current estimate from the CBI, which has carried out research on this in the City, suggests that the yield from bonuses this year—the bonus pool—is likely to be something in the order of £4.2 billion. Of that £4.2 billion, £2.5 billion goes to Her Majesty’s Revenue and Customs in tax because of high tax rates on bonuses, and rightly so. That leaves £1.7 billion in bonuses paid out, assuming that the projection is correct. The Opposition are suggesting that they will have a £2 billion tax on bank bonuses. Where is this £2 billion going to come from? It is considerably more than the total bonuses paid out. Even if they applied 100% tax, which is implausible, what would happen, obviously, is that pay would be consolidated. They have not thought this through. Perhaps that is why the hon. Gentleman did not bother to raise it. Can he can tell us how it will work?

Oral Answers to Questions

Debate between Vince Cable and Adrian Bailey

Thursday 9th June 2011 Commons Chamber

[Vince Cable]

I would not regard £3 billion as a small capitalisation—it is very substantial, and hopefully it will mobilise an additional £15 billion in this Parliament from the private sector. There is a question over how we develop the capacity of that bank, but the hon. Lady is right that we must take account of the ability of small companies to participate in the supply chains of the big bids that will undoubtedly be made under the GIB proposals.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Our embryonic solar power industry has huge concerns about the Government’s current policy on feed-in tariffs. If the Minister cannot assure me that he has consulted industry representatives, will he consult them?

[Vince Cable]

I have had consultations with the industry, although of course the primary responsibility rests with my colleagues in the Department of Energy and Climate Change. There is a particular problem with the large-scale solar power suppliers because of the subsidy element and the ability of Government to continue to support it, but certainly small-scale solar providers are helped under the feed-in tariff arrangements and we are looking at the wider implications for the industry.

Green Investment Bank

Debate between Vince Cable and Adrian Bailey

Tuesday 24th May 2011 Commons Chamber

[Vince Cable]

It will be difficult to support small and medium-sized enterprises directly—but there are other mechanisms for doing so. One area of investment will be industrial energy efficiency, and through the aggregation of projects, SMEs might well be part of that.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The CBI has expressed concern about the dangers of the Government’s overall green strategy inhibiting manufacturers’ ability to provide the necessary green infrastructure. May I seek reassurance from the Minister that he will fight resolutely on behalf of manufacturing industry to sustain that capacity to deliver in this country?

[Vince Cable]

Yes I will fight, and do fight, resolutely for manufacturing industry, which of course is now seeing significant growth. It is leading this country out of recession, and the CBI has very strongly made the point to me about the need for the manufacturing sector in green industries, and the need to safeguard the industries with energy-intensive plants, too.

Oral Answers to Questions

Debate between Vince Cable and Adrian Bailey

Thursday 31st March 2011 Commons Chamber

[Vince Cable]

I am aware of the firm that my hon. Friend describes and of its difficulties in Libya. If companies are operating in difficult markets, such as Libya, they are advised to take out trade insurance. Where the market cannot provide that, the Export Credits Guarantee Department will underwrite it. We are expanding the range of ECGD products and the Treasury has authorised payments to companies in Libya for which insurance is due.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Over the next four years, UKTI is set to have its budget cut by some 17%. The schemes most commended by the CBI are passport to export and gateway to global growth. Will the Minister give an assurance that among the budget cuts those services will be protected?

[Vince Cable]

I can assure the hon. Gentleman that UKTI is capable of and committed to providing an increased range of activities and a better service even within its budget.

Amendment of the Law

Debate between Vince Cable and Adrian Bailey

Thursday 24th March 2011 Commons Chamber

[Vince Cable]

Let me press on a little first, and then I will take an intervention.

In future, growth and jobs will come from the private sector, and in particular from small-scale business. Taken in conjunction with the trade White Paper to which I have referred, the Budget’s commitment to lower and stable corporation tax gives the strong signal that we are open for business and we warmly welcome inward investors. Growth and jobs also depend on small companies, which provided a giant proportion of the 300,000 additional jobs created in the private sector in the past six months, and they will be helped by the Budget’s extension of small company business rate relief and cuts in small company corporation tax.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

On inward investment, this Administration’s “ The Plan for Growth” states

“the Government will provide a bespoke service to key inward investors, giving them direct access to UK ministers and speedy resolution of bureaucratic obstacles to investment”.

Does the right hon. Gentleman not think that that could leave the Government open to rather difficult situations with foreign investors, and how does he think British businessmen will feel when they see inward investors getting priority access to Ministers that they do not enjoy?

[Vince Cable]

I would have thought that Opposition Members who want the economy to flourish and new jobs in their constituencies welcomed the fact that I and other Ministers spend a lot of our time talking to potential inward investors. That is good not only for them but for the British companies that then become part of their supply chain and whose confidence is reinforced.

Especially for small businesses, growth requires the Government not to put unnecessary obstacles in the way. When we searched the archives, we discovered that we had inherited a stock of 21,800 regulations and that the last Government were responsible for roughly 10,000 of them. Rather sad people like me who have spent some of the best years of our political lives in Statutory Instrument Committees will have seen all of that happening.

We have taken action to stop the gold-plating of EU regulations, to ensure that every new regulation is matched by the value of an “out”, and to mandate sunset clauses. We have launched a reform of the expensive and time-consuming tribunal system, and we have injected common sense into Health and Safety Executive inspections. The Budget confirmed the statement I made last week that there will be a three-year moratorium on new regulation affecting micro-businesses with fewer than 10 employees.

Trade and Investment for Growth White Paper

Debate between Vince Cable and Adrian Bailey

Wednesday 9th February 2011 Commons Chamber

[Vince Cable]

I would not completely deprecate efforts to promote the aerospace industry—I am doing the same—but my hon. Friend is right to say that the key message of the statement is about SMEs. Compared with countries such as Germany, the number of our small businesses that export is relatively small, and we have to publicise that help through bodies such as the Federation of Small Businesses and the chambers of commerce, as well as through our website. We will be active in doing that.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

As Chair of the Business, Innovation and Skills Committee, I wish to make it clear that previous reports from the Committee are slightly less critical of UKTI than may have been suggested by a Member earlier. I broadly welcome the thrust of the White Paper, especially in connection with export credit finance, which is obviously of crucial importance. It is good that that is being seen to be addressed. The White Paper and the Secretary of State both refer to the potential for further trade with the EU, and the removal of non-tariff barriers will have the potential to boost this country’s export income. Can the Secretary of State be more specific about what policies he will pursue in that area and give us assurances that those will have the support of the European Scrutiny Committee?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Can we have very short questions? There are many Members who wish to contribute, and I want to try to fit everyone in.

Department for Business, Innovation and Skills (Performance)

Debate between Vince Cable and Adrian Bailey

Wednesday 2nd February 2011 Commons Chamber

[Vince Cable]

Rather than prejudge what the first tranche of the regional growth fund will be, let us just wait for the outcome and decide which projects will proceed on the basis of the independent evaluation that they have had.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

rose—

[Vince Cable]

I have taken a large number of interventions. I will take one more, from the Chair of the Select Committee, and then move on.

[Mr Bailey]

The Secretary of State mentioned the manufacturing advisory service, and I welcome his comment that he is going to build on it. However, I had a meeting with a representative of that service who seemed very unsure what its future would be in the context of the new Government policy. Will he take the opportunity to give reassurance to members of that service?

[Vince Cable]

I can certainly reassure the hon. Gentleman that that organisation has a good record and a good future. If he wants to talk through the details, I am sure that the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk) will engage with him on that subject.

I was reviewing some of the areas where the Government inherited major problems and are now trying to deal with them—university administration, further education colleges, apprenticeships and regulations—but let me mention another, which does not even figure in the motion: the appalling history of Royal Mail and the Post Office. One of the things that we have done, which the previous Government were not able to do, is pass through the first stage of parliamentary scrutiny of a process that will eventually get those organisations on a sound footing.

Let us remind Labour Members what we inherited: a collapsing post office network, which had declined from 19,400 post offices to 12,000, mostly as a result of a forced planned closure programme; and a Royal Mail that had a negative cash flow in the last financial year of £520 million, an operating loss of £320 million and a pension deficit of almost £10 billion. We are taking the necessary action to solve those problems, whereas the previous Government had an opportunity to do so but walked away from them.

Local Growth White Paper

Debate between Vince Cable and Adrian Bailey

Thursday 28th October 2010 Commons Chamber

[Vince Cable]

In terms of private sector participation, the LEPs will have boards that are split 50:50 between business and the local communities and will be chaired by business representatives. They will be driven by business, which has a direct interest in ensuring that growth takes place. It will be a change from a begging-bowl relationship to a partnership; that is the essence of this approach. The Black Country LEP is not on the first list. The assessment made was that there was not a sufficient business input into the proposal, but we hope it will proceed very quickly.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I endorse the comment made by my fellow black country MP, the hon. Member for Stourbridge (Margot James), about the quality of the black country LEP bid, and I hope that it will be favourably considered in future. May I focus for a moment on the Secretary of State’s comment about particularly welcoming bids from areas that are highly dependent on public sector employment? Such areas are often dependent on public sector employment because of the weakness of the private sector. Given that the public sector is under extreme financial pressures, can he explain how such areas will be able to put together the expertise, and have the people, time and resources, to make a bid to the regional growth fund that would be capable of balancing or rebalancing their regional economy?

[Vince Cable]

In terms of the process for dealing with the LEPs, we had what my colleagues call a traffic light system. Very good, imaginative proposals with a strong business input that meet the needs of economic geography were put through to the first group. Quite a lot of the proposals were yellow rather than green, and they are being processed. I hope that soon we will have a list. Some had no ambition and no private sector input, and we have simply told them that they need to think again.

It is easy, I think, to fall lazily into stereotypes about growth in areas dominated by public sector employment. I recently looked at the figures produced by my Department on the rate of growth of new company formation in different towns and cities in Britain. The best performance in the UK was in Sunderland, followed by Rotherham. They are not archetypal south-east of England growth areas. There is a lot of entrepreneurial potential across this country, and we want to encourage and develop it.

Postal Services Bill

Debate between Vince Cable and Adrian Bailey

Wednesday 27th October 2010 Commons Chamber

[Vince Cable]

The Royal Mail and the Post Office are different businesses and they require fundamentally different solutions. The issue for Royal Mail is capital—how we deal with the pension fund. It requires a different model.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The Secretary of State has made slightly contradictory statements. First, he said he was consulting Co-ops UK for advice on mutuality and then he said he was consulting the Co-op Group. They are distinct organisations—one is advisory and the other is a huge retail operation. Could he clarify which he means?

[Vince Cable]

We are asking Co-operatives UK to give us advice. The hon. Gentleman is very close to the co-operative movement, so his input to the discussions will be welcome.

Higher Education and Student Finance

Debate between Vince Cable and Adrian Bailey

Tuesday 12th October 2010 Commons Chamber

[Vince Cable]

Indeed. Those two considerations are at the heart of the Browne report, and that is one of the reasons we have gone along with the thrust of its recommendations. There are proposals that we still have to make—and which, of course, will depend on the spending review—in relation to the maintenance package of grants and loans, which will, of course, affect the least-advantaged people in society. I cannot give details on that today, but that central point is clearly uppermost in our policy.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Conspicuously absent from the Secretary of State’s statement was any projection of the amount of increased funding for universities that would accrue from these measures. Are they designed to provide extra funding for the universities, which we need for an advanced industrial economy, or are they designed just to finance cuts in public expenditure?