AstraZeneca (Pfizer Bid)

Debate between Vince Cable and Julian Huppert

Tuesday 6th May 2014 Commons Chamber

[Dr Julian Huppert (Cambridge) (LD)]

(Urgent Question): To ask the Secretary of State for Business, Innovation and Skills if he will make a statement on the bid from Pfizer for AstraZeneca and the resulting effect on the economy, employment and skills in the United Kingdom.

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

The life sciences industry is of paramount importance to the UK as part of the Government’s industrial strategy, which is securing long-term investment in key sectors where we are global leaders. We are committed to ensuring that we are at the forefront of life sciences research and development, with high-quality jobs, manufacturing and decision making in the UK.

There has been much comment and debate in the press recently on this important issue. I stress, however, that Pfizer has not yet made a formal bid to take over AstraZeneca. The Government must, and will, approach it from the position of even-handed neutrality and recognise that it is ultimately a matter for the shareholders of both companies. I assure the House that I and my colleagues across Government engaged early with both companies to ensure that the outcome is positive for the UK, precisely to avoid the failures of previous Governments in such situations.

The Opposition are calling for changes to the law, but we are operating within the framework that they introduced in 2002, when they removed Ministers from decision making about mergers, apart from in a few specified public interest areas. I note that they chose not to reform the regime in response to the Cadbury-Kraft merger. One of the Government’s options would be to consider using our public interest test powers. That would be a serious step, and not one that should be taken lightly. I am open-minded about that, while stressing that we are operating within serious European legal constraints.

In conclusion, I want to assure the House that we are alive to the national interest considerations in this regard. We see the future of the UK as a knowledge economy, not a tax haven. Our focus is on what is best for the UK: securing great British science, research and manufacturing jobs and decision making in the life sciences sector.

[Dr Huppert]

I thank my right hon. Friend for his response. This would be the biggest ever takeover of a British firm and deserves careful scrutiny. Will he tell us what has been learned from the failures of the Kraft-Cadbury takeover, which did not safeguard UK jobs? What powers does he have under current legislation to intervene in this area?

The Pfizer proposals are driven largely by tax law. What certainty does my right hon. Friend have that the USA would not simply change its tax code and that Pfizer would return to the US, jeopardising any benefit to the UK? Has Pfizer asked for any changes to our tax laws, including the patent box? What representations have the Government received from other countries, such as China, the US and Sweden? What international hurdles does he anticipate for a deal such as this, including at European Union and global level?

Pfizer’s board has given a written assurance that it will keep some research and development and advanced manufacturing in the UK, with an opt-out should circumstances significantly change. How broad is that opt-out and what consequences would Pfizer face if it broke its assurances? Given Pfizer’s history in Sandwich, what confidence does my right hon. Friend have in its commitment to the UK?

Both Pfizer and AstraZeneca currently have sites in the Cambridge cluster owing to our excellent research environment. AstraZeneca has announced plans to concentrate its R and D in Cambridge and to move its global headquarters to our successful cluster, bringing 2,000 jobs. People are already transferring to a site in the constituency of the Leader of the House of Commons, my right hon. Friend the Member for South Cambridgeshire (Mr Lansley). What does the Secretary of State think would happen to those proposals if the takeover happened? Many other parts of the country would also be affected. I have been contacted by my hon. Friends the Members for Cheadle (Mark Hunter) and for Macclesfield (David Rutley), and the right hon. Member for Leicester East (Keith Vaz), among others. What does the Secretary of State think will be the consequences of these proposals for the UK’s science and skill base? Does he share my concern about the uncertainty for the industry and people’s jobs? What assessment has he made of Pfizer’s and AstraZeneca’s relative investment in R and D?

What assessment has my right hon. Friend made of the increased risk to the UK of there being fewer pharmaceutical companies here? What discussions has he had with the Secretary of State for Health about the medical consequences of the merger and potential delays in life-saving drugs? Finally, does he agree that companies can become too big to innovate?

[Vince Cable]

I congratulate my colleague, who is representing Cambridge very effectively on this issue, as indeed is the Leader of the House of Commons, my right hon. Friend the Member for South Cambridgeshire (Mr Lansley). I recognise my hon. Friend’s expertise and his pioneering work on cancer drugs in the life sciences industry. I will deal specifically with the Cambridge question because it has obviously been at the centre of the discussion.

It may be useful to read the relevant sentence from the open letter that Pfizer sent to the Prime Minister, bearing in mind that this is a proposal and has not been agreed with the Government—we have not accepted the terms of the letter. The issue of binding obligations remains to be addressed. The letter states:

“Pfizer commits to complete the construction of the currently planned AstraZeneca Cambridge campus, creating a substantial R&D innovation hub in Cambridge and the wider scientific community, which will include core research units, laboratory based scientific support lines and European clinical development and regulatory functions.”

My hon. Friend is concerned about decision making, not just research, and the letter continued:

“Pfizer will base key scientific leadership in the UK who will lead all European and certain global R&D functions based in Cambridge.”

We have had similar conversations with AstraZeneca to ensure that it is similarly committed.

On my hon. Friend’s wider concerns, he made a perfectly valid point about the United States tax regime. Of course, we have no certainty about how the US would respond, which is why I stressed in my introduction that we must view the issue from the point of view of industry strategy rather than tax. Having said that, the fact that Britain has a competitive and attractive tax environment is a positive good, and we should celebrate that.

My hon. Friend mentioned three anti-trust jurisdictions, but there are almost certainly others. This proposal involves two big, complex international companies and a variety of jurisdictions will have to assess it.

On the relative merits of the two companies, I do not propose to treat this as a beauty parade, but it is fair to say that there have been very substantial redundancies from both companies in recent years, of roughly the same order of magnitude. On the positive side, they are very considerable investors and collaborators.

On the NHS points, I have established from the Health Secretary that there are no urgent life-threatening issues in relation to drugs. On competition, there is potentially an issue for the new Competition and Markets Authority and the European competition authorities, and that is where plurality would need to be addressed.

Oral Answers to Questions

Debate between Vince Cable and Julian Huppert

Thursday 24th October 2013 Commons Chamber

[Dr Huppert]

Arthouse cinemas such as the Cambridge Arts Picturehouse are much smaller and completely different from massive chain multiplexes. Despite this, the Competition Commission wants to force the sale of the excellent Cambridge Arts Picturehouse. The Leader of the House said in response to a question I asked that

“there is no cause for the Competition Commission to seek to intervene”.—[Official Report, 10 October 2013; Vol. 568, c. 314.]

Will my right hon. Friend the Business Secretary talk to the Competition Commission and encourage it to work on real local monopolies and not this issue?

[Vince Cable]

As an avid cinema-goer and, indeed, someone who used to go to that cinema, I have some sympathy with my hon. Friend, but the process is this: the Competition Commission has come to a resolution and the next step has to be to go to the Competition Appeal Tribunal. I suggest to my hon. Friend that, since the Cambridge law faculty has some of the best minds in the country, including that of his predecessor, it may want to take on this issue on a pro bono basis.

Office for Fair Access

Debate between Vince Cable and Julian Huppert

Monday 20th February 2012 Commons Chamber

[Vince Cable]

This is a first-class appointment, which was arrived at in a proper, open and fair manner. As I said, I welcome the role that the Select Committee plays; I used to serve on the Treasury Committee, and the critical reviews it gave the members of the Monetary Policy Committee were very valuable. Critical comments have been made in this case, they have been addressed by Professor Ebdon and by me, and he will therefore come before the Select Committee on a regular basis to report. I think that the Select Committee scrutiny process has been very valuable.

[Dr Julian Huppert (Cambridge) (LD)]

I have the privilege of representing three excellent universities. Clearly, the head of OFFA has a lot of work to do to balance improved access and high standards. Will my right hon. Friend assure me that Professor Ebdon will get full governmental support in his role, particularly from the Department for Education, because far too many pupils, particularly those from black and ethnic minority backgrounds and those who receive free school meals, are still not given the chance to reach their full potential while they are at school?

[Vince Cable]

My hon. Friend is absolutely right to stress that the origins of the access problem and the lack of fair access are frequently found in the schools—I think that that was the point of the original question—not just in university admissions. It is important to pay tribute to the reforms that my colleague the Secretary of State for Education is making, in terms of improving standards and the introduction of the pupil premium, for which my hon. Friend and I have campaigned. It will undoubtedly raise standards in schools.

Oral Answers to Questions

Debate between Vince Cable and Julian Huppert

Thursday 27th October 2011 Commons Chamber

[Vince Cable]

Absolutely. I am resolute, and I hope that my colleagues on the Opposition Benches will work with me in combating both.

[Dr Julian Huppert (Cambridge) (LD)]

The Department for Business, Innovation and Skills is considering the creation of a public data corporation. Does the Minister accept that making public data openly available can facilitate innovation in more ways than can be easily anticipated, benefiting the economy and the country? Will he meet me and other campaigners to discuss the details of that further?

Postal Services Bill

Debate between Vince Cable and Julian Huppert

Wednesday 27th October 2010 Commons Chamber

[Several hon. Members]

rose—

[Dr Julian Huppert (Cambridge) (LD)]

Does my right hon. Friend share my sheer joy and satisfaction both about the money and about the idea that we will no longer have to campaign against Government closures of post offices? We can get on with supporting them in their work.

[Vince Cable]

Yes, indeed. That is the outcome. For the past decade I and many on the Opposition Benches have been involved in fighting for our local post offices. In many cases, constituencies have seen the loss of a dozen post offices. That will come to an end.

Oral Answers to Questions

Debate between Vince Cable and Julian Huppert

Thursday 8th July 2010 Commons Chamber

[Vince Cable]

There is absolutely no conflict, dispute or ideological perspective involved in this at all. We have made it clear that all the RDAs will be replaced by local enterprise partnerships. They will have a change in function from the current RDAs. We have also made it clear that if there is a will in a region to operate on a regional basis, a regional structure can emerge. The Minister of State, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), will shortly produce a White Paper setting out how the regional process will develop.

[Dr Julian Huppert (Cambridge) (LD)]

T3. I have been made aware recently of a number of cases of academic visitors coming to the UK, often for only a few days, and being denied visas for their entry. Will the Minister meet the Home Secretary to work out a new protocol for treating these people? Will he also meet me to talk through the issue, so that we can ensure that the reputation of British educational research is supported and not weakened?