Steel Industry
Debate between Vince Cable and John Healey(9 years, 10 months ago)
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Vince Cable
My Department has been engaged in active discussions with the Treasury about the implications of the carbon price floor and other environmental measures. I was going to make the point that the principle of trying to change incentives through the tax system to discourage carbon-intensive production was inspired by the Leader of the Opposition when he held this role in government, and we have maintained that green principle in taxation. Of course, that has costs for energy users, and we have sought to deal with that through a compensation mechanism, which so far has made commitments of £3 billion. I shall explain in a moment the progress we have made on implementing that.
John Healey (Wentworth and Dearne) (Lab)
The Business Secretary is urging a balanced approach. Is he aware that the shadow Business Secretary has said that trade unions at their best are wealth creators for this country? We never hear that from the Prime Minister or the Chancellor. Can we hear that, along with a tribute to trade unions, from the Business Secretary?
Vince Cable
I have no inhibitions about doing that. I am always happy to engage with the trade union movement, either at the TUC level or a community union level. On this whole issue, they have been very constructive, so I have no problem agreeing with the right hon. Gentleman.
EU Funding
Debate between Vince Cable and John Healey(10 years, 9 months ago)
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The Secretary of State for Business, Innovation and Skills (Vince Cable)
I congratulate the right hon. Member for Wentworth and Dearne (John Healey) on securing the debate. I welcome it because it gives me the first opportunity to set out in the House how we want to respond to the High Court, because we are dealing essentially with the legal implications of that ruling.
Let me start with the legal particulars before getting on to the wider policy question. On 7 February 2014, the High Court indeed quashed two decisions that I made last year. The first allocated EU funds to England, Scotland, Wales and Northern Ireland, and the second allocated funds to local enterprise partnerships within England. Two arguments were put forward by the claimants—the LEPs representing south Yorkshire and Merseyside—in the judicial review case. The first was that the allocations were irrational and unreasonable, which is the case the right hon. Gentleman has developed again today, and the second was that insufficient regard had been paid to the public sector equality duty.
On the first point—and this is absolutely crucial to the debate—the Court found that the methodology and allocations were rational, proportionate and permissible, and the claimants’ arguments on these points were dismissed. That is relevant, because it was not so much the right hon. Gentleman in his speech but some of his colleagues in their interventions who talked about gerrymandering, or the arbitrary attempt to include the Chancellor’s constituency. It is very clear that the Court found that the decisions were not arbitrary in that way. They may not have produced the satisfactory political outcome from Opposition Members’ point of view, but the Court did not uphold the argument that there was any form of irrationality or disproportionality in the decision.
John Healey
The Secretary of State is factually correct, as I said in my remarks, but does he regard those decisions as fair and consistent with the purposes of the European structural fund?
Vince Cable
Well, we do, because we have been trying to reconcile a whole series of different issues. I was going to make this point to the right hon. Gentleman later: he has been a Local Government Minister in his earlier capacity. I remember petitioning on behalf of my own council. He knows the problems of allocating resources when there is a fixed pot of money; some people will be happy and some people will be unhappy. These are difficult decisions, and we derived a methodology that we believed to be fair. These decisions were not based on arbitrary allocations; they were based on a methodology. That is very important—these were not arbitrary decisions.
The judge ruled—the ruling was very clear—on the sole ground that our public sector equality duty was not met, even though an equality impact assessment was completed and it concluded that it was unlikely that having regard to such a duty would have made any difference to the original decisions by the Department for Business, Innovation and Skills.
Pub Companies
Debate between Vince Cable and John Healey(11 years, 10 months ago)
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Vince Cable
Yes, my hon. Friend is absolutely right. I shall say more about this later, but the microbreweries and innovative breweries are a major growth industry, expanding well and offering a more varied service. They are a great success story and we do not want to do anything with this new approach that will undermine them.
John Healey
I welcome the Secretary of State’s commitment to a statutory code of practice, but would he also accept that the viability of hundreds of pubs is damaged by high and escalating beer duty? Will he ensure, in his Department’s budget submission, that BIS Ministers also argue for an end to high beer tax and inflation-busting increases and for an end to the system that favours foreign-produced wine over British-brewed beer?
Vince Cable
The right hon. Gentleman is right that, as the Opposition spokesman acknowledged, a variety of factors have hit the pub industry, besides the structure of ownership. I do not know whether the right hon. Gentleman was a Treasury Minister in 2008 when the beer duty escalator was introduced.
Vince Cable
The right hon. Gentleman shakes his head. Nevertheless, many of us in the House voted for those beer duty increases, so I cannot disown them at this stage. They are an important source of revenue, as his Government, as well as ours, realised.
Enterprise and Regulatory Reform Bill
Debate between Vince Cable and John Healey
Vince Cable
Let me finish, and then I will take interventions.
The bank will also demonstrate the Government’s lasting commitment to important green objectives. For these reasons, I am sure the Opposition will welcome and support its objectives, as I am sure the hon. Lady will.
Vince Cable
I am aware that the team currently working on this, UK Green Investments, has been looking at the green deal proposal. Of course it must be commercially viable, as well as environmentally sound, and I cannot give the hon. Lady a precise answer as to when the team will have completed its analysis. I think a good deal more information is still required.
John Healey
Will the Business Secretary confirm that the green investment bank will be able to raise funds from the capital markets? In other words, will it be a bank that is able to borrow? If not, it cannot be described as a bank, and it is really just a fund.
Vince Cable
It has been described as a bank by the Financial Services Authority, which is the relevant regulatory body, and it will be able to borrow after 2015 in capital markets, subject to the overall debt position of the Government at that time. It is a bank.
Vince Cable
My right hon. Friend is right. We have the Green Economy Council, which is an over-arching body representing the key Departments in the Government to make sure that our work in this area is integrated and properly joined up.
John Healey
If the referendum on Scottish separation is successful, will the Secretary of State relocate this green investment bank from Edinburgh back to England? May I recommend that he considers Leeds and re-examines the case for locating the bank in Yorkshire?
Vince Cable
I have every confidence in the sense of the Scottish people, and I have every confidence that the bank’s headquarters will remain viable and expanding in Edinburgh.
On employment law, the Government are acutely aware of the need to do all they can to support business expansion and job creation. That is why the Bill contains provisions to reform the employment tribunal system and encourage dispute resolution through conciliation. Smaller businesses have consistently told us that the fear of ending up in a tribunal is high up their worry list and is a real disincentive to taking on staff. I have made it absolutely clear that I have no truck with the idea of a free-for-all hire-and-fire culture, and responsible British businesses do not want to go there either.
John Healey
May I say how welcome the Secretary of State’s balanced view is, in contrast to those of some Members behind and beside him? On the question of changing the tribunal system, what increase in resources will he make available to the Advisory, Conciliation and Arbitration Service if everyone who wants to put a claim to a tribunal must first put it to ACAS?
Vince Cable
My experience is that colleagues behind and beside me have a very balanced view of this question—we have no difficulties in this area at all. We will indeed rely heavily on ACAS and it is important that it is properly resourced, so we will obviously have to look at that, but we have had no warnings that it cannot handle the processes that we propose to introduce. If the right hon. Gentleman will let me, I will try to describe what those are.
Our reforms are not about removing individual employment rights; they are designed to ensure that the tribunal system is fair to all parties and supports labour market flexibility. They are meant to improve the prospect of employers and workers sorting out problems through reconciliation—ACAS-based dispute resolution—rather than the adversarial and costly method of going to court, as my hon. Friend the Member for East Surrey (Mr Gyimah) admirably pointed out. Tribunals are a costly and stressful process for everyone involved. Giving all parties a new opportunity to resolve disputes through ACAS will maximise the chances of resolving a problem without going to a tribunal.
We want to do more to encourage parties to reach an agreed solution at an earlier stage. We will therefore introduce an additional clause in Committee to ensure that the offer of a settlement cannot be used against an employer in an unfair dismissal case. That will facilitate the use of settlement agreements, making it easier and quicker for employers and employees to come to an agreed settlement where an employment relationship is not working.