(5 years, 8 months ago)
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The hon. Gentleman is right that that is a constructive response to the problem. If more manufacturers were like his, the economy in plastics would be in a much healthier state. I will come in a moment to some of the reasons why that company is one of the relatively few that are succeeding. It is extremely important none the less.
I declare an interest as chair of the all-party parliamentary group for the packaging manufacturing industry. We have already spoken about manufacturing. Manufacturers take an entirely responsible attitude to plastic; it is people putting plastic in the wrong place that gives rise to the problem. The industry has a target of having zero to landfill by 2030, and has made great steps to get to 78% now. Will the right hon. Gentleman acknowledge the efforts that the industry is making to do the right thing and to avoid waste getting into the wrong place?
I acknowledge the will of the industry, but there is a lot of bad practice and a lot of products that are unnecessary and are produced in ways that do not help. I fully acknowledge that a lot of manufacturers are responsible, and I am sure they are the people with whom the hon. Gentleman is engaging.
The second direction from which I am approaching this matter is in relation to the global warming controversy, which we have been debating over the weekend. Plastics have a somewhat ambiguous role here. They save on air miles and other forms of transport because they are relatively light materials—I am sure the hon. Gentleman’s manufacturers would make that point—but they are also hydrocarbons, so their manufacture and disposal add to global warming gases.
When looking at the material, I found little clarity about the net effect. There is speculation that in 2050, which is the end of our national statutory period for targets, we could have between 15% and 30% of the carbon allowance dedicated to plastic use. I do not know what the answer is. It would be helpful if DEFRA and the Minister commissioned a study, or brought together the studies that have been done, on the impact of plastics on global warming, because the area is ambiguous.
The third reason I secured this debate is that this is the time of year when I, like other colleagues, go to visit other constituencies in the context of local elections. This year I have noticed a particular interest in environmental issues and recycling in local elections. Councils are rightly trying to up their game and avoid the penalties associated with waste disposal.
The situation in my borough brings out some of the dilemmas. It is effective in recycling: it recycles 95% of bottles, cardboard, paper and cans, but it recycles only 50% of plastics. There are some inherent problems, such as food contamination, which clogs up machinery, is very bad for the people who have to do the picking and attracts vermin. Many members of the public do not seem to appreciate that it is difficult to deal with. In the case of many plastics—this goes back to an earlier intervention—the manufacturers do not appear to appreciate that, for technical reasons in the manufacture, their product is non-recyclable. A little example is the devices we use for cleaning fluid: the bottles can be recycled, but the gadgets at the top to squeeze out the fluid cannot. The black plastics used in a lot of carry-out food cannot be recycled. Most people are not aware of that, and there is clearly a major public education task involved. Perhaps the Government should be focusing rather more on that.
(10 years, 3 months ago)
Commons ChamberOn the hon. Gentleman’s latter point, he is right that Scottish institutions benefit disproportionately from UK research because of the excellence of their work and that they would no longer be guaranteed access to UK funding streams in an independent Scotland, although I hope they would maintain their excellence. We will certainly try to ensure that SMEs are taken properly into account in the competition for European funding. His point is a good one.
A recent report showed that reshoring is increasing across the economy. That happens when UK companies source more of their products from the UK. It is estimated that over the next 10 years that could create 200,000 jobs and boost output by up to £12 billion. Does the Secretary of State agree that that is an effective demonstration of the increasing competitiveness of the UK economy?
It is. Indeed, reshoring is happening in somewhat surprising areas. I had a meeting only yesterday with representatives of the British textile industry, which almost disappeared years ago. A significant amount of reshoring is taking place because companies want to be close to the market and regard the business environment as attractive. The same is happening in the aerospace supply chain and elsewhere. We are doing what we can to support that through the regional growth fund and other Government schemes.
Again, I agree with the hon. Gentleman’s basic proposition. As it happens, much of the alarm that was raised some months ago about large American companies taking over British companies or British-based companies on the back of those tax provisions have proved wholly unfounded. He is quite right that takeovers, although they are generally beneficial to the UK economy, should not be driven by artificial short-term tax considerations.
T3. Businesses in Rugby tell me that the changes this Government have made to the employment tribunal system have encouraged them to expand and take on more staff, and the growth in employment demonstrates that. Does the Secretary of State share my concern that Labour’s proposals to scrap our reforms would mean a return to the bad old days when companies were discouraged from taking on that extra person through fear of getting tied up in a weak or vexatious tribunal claim?
Indeed, and the world competitiveness report acknowledged that Britain ranked number four in the world in overall attractiveness in labour markets. My hon. Friend is right that the reforms we have introduced are certainly one factor in that we have had a growth of 2 million in private sector jobs since May 2010. One factor that has not been noted, and certainly has not been noted by Opposition Members, is the very large number of cases now being dealt with by ACAS that would otherwise have gone through an expensive and frustrating legal procedure.
(10 years, 6 months ago)
Commons ChamberThe hon. Lady makes a valid point. I know that in her constituency there is a particular problem with graduate unemployment, which we have discussed. Youth unemployment is a long-standing problem. It was very substantial even before we got into this major recession and financial crisis. We need to deal with it in a variety of ways: job training, apprenticeships and by providing a better-working market.
I ran a business before coming into this place and the Secretary of State will know that what businesses need is confidence that they will be rewarded for making the right decisions. That will encourage businesses to take on more people and deal with many of the issues raised by the Labour party. This Government have given businesses confidence and that is why we are seeing significant reductions in unemployment.
That is why I started my speech by saying that the most important thing we are doing is encouraging small businesses to grow. That is where the jobs come from. That is what I am keen to get to, but as the Opposition amendment was couched solely in terms of the second element of the Bill, that is what I am now trying to address.
(11 years, 2 months ago)
Commons Chamber14. What steps he is taking to support small businesses.
We are doing more than ever to support small business. More than 7,000 start-up loans have been drawn down since the scheme’s launch in September 2012. Over the past year, UK Trade & Investment has helped 31,800 businesses to export, the growth accelerator scheme has supported more than 9,000 small businesses, and the regional growth fund has helped a further 3,000.
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.
Having run a small business, I understand exactly the burden of regulation that small businesses have to deal with, and I know how pleased small businesses in Rugby are about the Prime Minister’s commitment to make this Government the first in history to cut the overall amount of regulation. Will the Secretary of State confirm that his Department will lead the efforts to cut burdens that hold back small businesses from growing and taking on more staff?
We are totally committed to that task. Under the red tape challenge—the one in, two out system that my colleague the Minister of State, Department for Business, Innovation and Skills, the right hon. Member for Sevenoaks (Michael Fallon) is leading admirably—we estimate that we have probably already saved business about £1 billion a year, and there is a commitment to extend that process.
(11 years, 5 months ago)
Commons ChamberMy hon. Friend is absolutely right. The Automotive Council has identified skills shortages as a key problem. As a result of the adoption of the strategy document, the industry has committed itself to a significant growth in the number of apprenticeships. We have already seen a considerable increase, but he is right to suggest that this is an issue not simply for the big original equipment manufacturers but for the supply chains, and a lot more needs to be done to make the car industry seriously competitive through skills.
Will the Secretary of State comment on the success of the sector and the impact on the supply chain? On Friday, I had the benefit of meeting a small business in my constituency, Automotive Insulations, which supplies products to, among others, Jaguar Land Rover and Bentley. It is looking to move to a new 60,000 square foot building, to employ a further 60 people and to generate £1 million- worth of investment over the next few years.
This is indeed a very successful industry. Over the last couple of years, we have had commitments to something in the order of £6 billion-worth of new investment. One factor has undoubtedly been the confidence that the Government are fully supportive of the industry and are working with it through the Automotive Council. The confidence factor is indeed spreading into the supply chain. There are very good economic reasons why a significant amount of the supply chain that has been offshored should now be onshored—and that process is beginning. We want to do everything we can to encourage it.
Coventry seems to have some problem in that area. I come from the city of York, which went through this misery, as many towns have done in the English league. I can certainly have a look at that; it is not immediately clear to me where I fit into the picture, but I am interested in football and want to see it healthy.
On employment law reform, does the Secretary of State agree that there would be a significant boost to our country’s small businesses if the cost of attending employment tribunals was reduced, given that, according to his Department, the average cost of successfully responding to and defending a claim is £6,200?
(12 years, 7 months ago)
Commons ChamberThat sounds like the basis of a speech in the debate. The hon. Gentleman will know that we are pursuing forceful policies in respect of innovation, including the establishment of the catapults across the country—something entirely new and positive in the innovation sphere—without the need for legislative approval.
In recognising the needs of small businesses in respect of parental leave, will the Secretary of State consider the matter of employees giving as much notice as possible to those businesses in order that they can make allowances for when staff are not going to be present?
That suggestion sounds eminently sensible. I do not know the extent to which it is required to be incorporated in the law, but it seems eminently sensible to pursue it in guidance.