Oral Answers to Questions

Debate between Vince Cable and Julian Smith

Thursday 26th June 2014 Commons Chamber

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

At the Mighty Middle conference held by GE Capital and the Reform think-tank this week, mid-sized companies from across Britain were exceptionally positive about the Government’s long-term economic plan. What more can we do to celebrate and assist those mid-sized companies?

[Vince Cable]

Mid-sized companies are absolutely central to the Government’s industrial strategy. We are working with them to develop supply chains in the car industry, aerospace and the various energy sectors, and to support access to finance, training and innovation. They have a great deal of potential, as they do in countries such as Germany, where the Mittelstand are better developed than they are here.

Oral Answers to Questions

Debate between Vince Cable and Julian Smith

Thursday 10th April 2014 Commons Chamber

[Vince Cable]

It is not my job to collect information on the Conservative party’s funding. All I can tell the hon. Gentleman is what the Minister of State has already told him: that a majority of the shares allocated to priority investors are still held by them and a substantial majority of the shares in Royal Mail that were issued through the initial public offering are being held by long-term institutional investors.

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

The start-up loan scheme is one of the most inspirational business policies that this Government are pursuing. Can the small business Minister confirm that we are right behind it, we are putting more money into it and we will do everything we can to grow the scheme as much as possible?

Oral Answers to Questions

Debate between Vince Cable and Julian Smith

Thursday 23rd January 2014 Commons Chamber

[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.

Oral Answers to Questions

Debate between Vince Cable and Julian Smith

Thursday 18th July 2013 Commons Chamber

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

HSBC has shut its branch in Masham and is now doing the same in Pateley Bridge, deep in the Yorkshire dales, in one of the most rural counties in England. In discussions with senior bank executives, will my right hon. Friend make the case for rural areas, lest we get into a banking-free, financial services-free zone in our most remote locations?

[Vince Cable]

I note what my hon. Friend has said. Of course, it is worth recalling that banking services are being disseminated through the post office network, and one of the consequences of our being able to save that network from large-scale closures is that banking services are available now even in the most remote rural areas.

Royal Mail

Debate between Vince Cable and Julian Smith

Wednesday 10th July 2013 Commons Chamber

[Vince Cable]

We are building on the success of the modernisation of the last few years, and I pay tribute to the management and the work force who have made that possible. The one factor that the hon. Lady’s model does not deal with is how a company of that kind raises substantial amounts of capital when it would be in direct competition with schools, hospitals and other bodies that require public sector investment. That is the big inhibition at the moment.

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

Settle post office, deep in the Yorkshire dales, has benefited hugely from the Government’s Post Office reforms. Will the Secretary of State confirm that one of the most rural areas of Britain will benefit even more from the changes he has announced today?

[Vince Cable]

Post Office Ltd is a separate organisation under a publicly owned umbrella, and within that there are large numbers of highly competitive, self-employed entrepreneurs who run the post office network. We are supporting it substantially, modernising it and preventing large-scale closures. There is indeed an excellent future for the hon. Gentleman’s local post office.

Oral Answers to Questions

Debate between Vince Cable and Julian Smith

Thursday 13th June 2013 Commons Chamber

[Vince Cable]

The hon. Gentleman is right to say that there are particular problems in the north-east of England, but they are far from new. I was in his constituency a few weeks ago when I visited Durham and Tyneside. The great potential of the north-east is that it is a major manufacturing area of the UK with a strong export intensity. If we can achieve the rebalancing of the economy, as we are determined to do, the north-east could be one of the main beneficiaries. I am happy to meet him to talk further about that.

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

The Government are having a really successful run-up to this year’s G8; $4.5 billion was pledged for global malnutrition last Saturday and there has been a highly successful science summit this week. Will the Science Minister update the House with further details of the science summit?

Industrial Strategy

Debate between Vince Cable and Julian Smith

Monday 10th September 2012 Commons Chamber

[Vince Cable]

Of course, the defence sector does have an important role to play in the approach I am developing, particularly in procurement and in research and development. We want that approach to be fully cross-government, and it will include defence. We work closely with the French, as the hon. Lady knows, in the aerospace sector and we learn from their experiences, not all of which are successful, one has to say.

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

Does the Secretary of State agree that as well as having an industrial strategy we need to do everything we can to encourage business confidence and that at this moment we need everyone to get involved, including the Opposition?

[Vince Cable]

Yes, I totally take that point. I thought the comments today were a little carping and negative and not terribly original, but I will continue to encourage the Opposition to be more constructive.

Directors’ Pay

Debate between Vince Cable and Julian Smith

Wednesday 20th June 2012 Commons Chamber

[Vince Cable]

I have identified that problem. It is particularly a problem in banks, where the so-called code staff, including traders, are sometimes paid more than their directors. That will be covered by the regulation on financial services, which is being strengthened in that respect. There are probably very few public listed companies outside the banking sector where the phenomenon the hon. Gentleman describes is real.

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

Will the Secretary of State talk a little more about the transparency proposals for paid consultants? Is it worth considering adding to that the fee structures and mechanics for executive search consultants in relation to board positions?

[Vince Cable]

I will happily give the hon. Gentleman more information on the detailed work done on the rules governing transparency in that sector. His point about executive search agencies is a new one—I had not encountered it before—and we will certainly consider it, but the principle of greater transparency is absolutely right.

Enterprise and Regulatory Reform Bill

Debate between Vince Cable and Julian Smith

Monday 11th June 2012 Commons Chamber

[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.

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

I welcome the decision to move forward with settlements and compensation, which is a really good move, particularly for small businesses, and thank the Secretary of State for listening to many Government Members who have put the case for more clarity for smaller businesses.

[Vince Cable]

I thank my hon. Friend for his positive response. The Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for North Norfolk (Norman Lamb), who will guide the Bill through Committee, will be able to develop that a little more, and any insights that my hon. Friend has for improving that new idea will be warmly received.

--- Later in debate ---

[Vince Cable]

I have an open mind if the hon. Gentleman has good ideas as to how that can be done. We have committed ourselves to removing the gold-plating of European legislation as it applies to Britain, and if he has good, constructive ideas, we are happy to look at them.

[Julian Smith]

Has the Secretary of State given any further thought to including EU directives and legislation in the quarterly statements that are being produced by his Department? Earlier, he said in answer to a question of mine that he might consider it, and I would be interested to know whether he has done so.

[Vince Cable]

The Minister of State, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), who has done admirable work in progressing this agenda, tells me that we are indeed planning to do that and that it will appear in that form.

Business and the Economy

Debate between Vince Cable and Julian Smith

Monday 14th May 2012 Commons Chamber

[Vince Cable]

That is not correct. There has been a sustained improvement in private sector employment.

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

Will the Secretary of State list some of the international companies that have invested across Britain during the past six months?

[Vince Cable]

I would be here for much of the afternoon if I listed all of them, but I am sure that my hon. Friend will be familiar with some of the big and high-profile investments, including those in the car industry by companies such as Nissan, Jaguar Land Rover and others, which are important not just in themselves, but because they involve a long-term investment commitment to the UK and bring behind them a large supply chain of small companies.

--- Later in debate ---

[Vince Cable]

No, the Volcker rule as such is not in the legislation, but there is nothing stopping the hon. Gentleman bringing his proposals forward when the Bill is debated on the Floor of the House.

As several colleagues behind me have said, regulation is an issue, particularly excessive regulation for small companies, but inconsistent regulation damages businesses just as much, so the enterprise and regulatory reform Bill, as well as repealing some unnecessary requirements on business, will extend the primary authority scheme, enabling businesses that trade across local authority boundaries to deal with one authority on particular regulatory issues. If we consider that local authorities are responsible for 80% of inspection activity, covering areas such as trading standards, health and safety, and environmental health, the benefits of this approach are clear. As of last month, more than 450 businesses were members of the scheme, covering more than 50,000 premises in the UK, including many of our major high street retailers. Our reforms will make the primary authority scheme available to many more small and medium-sized enterprises and help improve the targeting of inspections, which can be so time consuming.

The Bill also contains provision for accelerating deregulation. Much is being done at present through the one-in, one-out system to prevent small companies, in particular, from being suffocated by red tape, and we are working with like-minded Governments in Europe, as I pointed out to the hon. Member for Stone (Mr Cash) a few moments ago, to roll back excessive regulation emanating from Brussels. The red tape challenge is repealing many of the 22,000 Government regulations that impose unnecessary costs on business, mostly by secondary legislation, but also, where necessary, through the Bill. The Bill will also embed sunset clauses.

[Julian Smith]

Will the Bill include the possible inclusion of European legislation in the quarterly statements that are now put in place for all Departments? Is that under consideration?

[Vince Cable]

I do not see why we should not do that, but I do not think that legislation is required to make that possible. We will certainly see whether it is feasible.

Small businesses also tell us that the fear of employment tribunals is a real disincentive to expanding and to taking on new staff. An employment tribunal is often a costly and stressful process for all concerned. I am fully persuaded that there has to be a balance between the legitimate expectations of workers that they will be protected from abusive employers and the legitimate expectation of businesses, especially small companies, that they can dismiss underperforming staff and not face costly and bureaucratic procedures. That balance is best pursued not through an adversarial system but by fostering conciliation in the workplace.

Our reforms will therefore promote the early resolution of disputes through the greater use of early conciliation and settlement agreements, so that fewer disputes end up in a tribunal. A tribunal is an admission of failure, so we want tribunals to be a last resort.

--- Later in debate ---

[Vince Cable]

That proposal is not in the enterprise and regulatory reform Bill. We are committing to extending flexibility at work in a way that avoids unnecessary costs for companies and delivers real economic benefits. Research from the CBI, for example, found that 63% of firms offering flexible working reported lower staff turnover, saving on recruitment and training costs.

[Julian Smith]

Will the Secretary of State confirm that there is a strong argument for excluding micro-businesses—those comprising fewer than 10 employees— from these proposals and allowing them just to get on and run their businesses on their own?

[Vince Cable]

I recognise that there are particular problems for small companies in adapting their work practices, but of course many of the most successful small companies have flexible practices. The idea of creating a two-tier labour market in this respect has many practical difficulties, but we can debate that as the Bill goes through Parliament.

Economic Growth and Employment

Debate between Vince Cable and Julian Smith

Wednesday 23rd November 2011 Commons Chamber

[Julian Smith]

Will the Secretary of State tell us what situation he found exports in when he arrived in his post? What sort of condition was UK Trade & Investment in and what great suggestions did the previous Government have in this area?

[Vince Cable]

UKTI has been radically reformed, thanks to the Minister for Trade and Investment, Lord Green. I think that it will perform an excellent function. What I found was that British export activity in the big emerging markets, which is clearly where future growth lies, had been sorely neglected for many years. As somebody put it to me, when we turned up on the beach the Germans were already in the deckchairs. They have dominated the market in these countries and we are a marginal player. It will take years to turn that around, but that is where our emphasis lies.

Oral Answers to Questions

Debate between Vince Cable and Julian Smith

Thursday 14th July 2011 Commons Chamber

[Vince Cable]

The hon. Gentleman is right in the premise of his question; the automotive industry is enormously important. As he knows, some very welcome investment is taking place in the west midlands, the north-east, Luton and elsewhere. Indeed, I have been to Japan, Detroit and elsewhere to encourage that investment. He is right also that potential investors stress the need for skills. A great deal of investment is now taking place; specifically, there are the 10,000 places for advanced apprenticeships, which will be directed specifically to small and medium-sized enterprises in the supply chain of industries such as the vehicle industry.

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

12. What progress his Department has made on its employment law review.

Trade and Investment for Growth White Paper

Debate between Vince Cable and Julian Smith

Wednesday 9th February 2011 Commons Chamber

[Vince Cable]

I am certainly talking to my colleagues in the Home Office and making exactly the case that the right hon. Gentleman has just made. [Hon. Members: “Oh!”] This is a major export industry—worth over £5 billion, quite apart from the other benefits that we derive from having overseas students—and in the universities there is almost no problem. As he knows, there is an issue with some English language schools, but those schools are also a feeder for students going to university here. It is important that we remain as open as possible, while dealing with the undoubted abuses that occur in some cases.

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

In this transition year between regional development agencies and local enterprise partnerships, will the Secretary of State ensure that the regions, especially Yorkshire, fully benefit from this excellent White Paper?

[Vince Cable]

Yes; my hon. Friend has raised the wider point about ensuring that the LEPs are as effective as possible. As he will know, the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk) has announced that most of Britain, including all our major conurbations, is now covered. I now expect them to get to work, and to address the kind of problems that my hon. Friend has brought to our attention.

Department for Business, Innovation and Skills (Performance)

Debate between Vince Cable and Julian Smith

Wednesday 2nd February 2011 Commons Chamber

[Vince Cable]

No doubt the hon. Gentleman will tell us where that fits on the shopping list. On industrial support, I shall simply say that where the previous Government promoted good schemes, such as the manufacturing advisory service, we are building on them, because we are looking at them on their merits, not doctrinally. However, where schemes were failing and were not cost-efficient, we have reduced them and scrapped them.

[Julian Smith]

Small businesses across Britain were delighted to hear last week’s announcement by the Government on tribunals. May I encourage the Secretary of State and his excellent employment Minister, the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for Kingston and Surbiton (Mr Davey), to go further and faster on freeing things up, and freeing small business from Labour’s legacy of red tape?

[Vince Cable]

I am grateful for my hon. Friend’s encouragement, and the Government intend to do exactly what he suggests. Shortly, we will take a forward look at the pipeline of regulation, and how we plan to reduce regulation and make it proportionate.

Local Growth White Paper

Debate between Vince Cable and Julian Smith

Thursday 28th October 2010 Commons Chamber

[Vince Cable]

I thought that there was a consensus in the north-east, but it manifested itself in a whole series of fragmented bids, and that is rather sad. Fortunately, the situation has been retrieved. Council leaders are now working and talking together, and they have produced a much better proposal, which I think will succeed. On foreign investment, it is absolutely absurd for regional development agencies throughout the country to have separate, competing ambassadors in overseas countries. Such work really has to be done much more sensibly, and the LEPs will have a role in helping foreign investors once they have committed themselves to a particular location.

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

Will my right hon. Friend pay tribute to Barry Dodd and those behind the Yorkshire Enterprise Partnership, a community interest company that will work with LEPs in Yorkshire to promote inward investment and to co-ordinate opportunities throughout the county? Is that not a great example of bottom-up, rather than top-down?

[Vince Cable]

It is, and it also addresses the issue that Opposition Members have raised: the assumption that only if the Government provide a large budget can such organisations function. A community enterprise partnership of the kind that the hon. Gentleman describes is exactly the way to make LEPs operational and effective.