Oral Answers to Questions

Debate between Vince Cable and Neil Carmichael

Thursday 26th June 2014 Commons Chamber

[Vince Cable]

I would have thought that most reasonable people would welcome the growth of self-employment and entrepreneurship that is happening under this Government. I think they would also probably welcome the fact that the benefits system demands maximum integrity.

[Neil Carmichael (Stroud) (Con)]

T7. Do Ministers agree that a central part of the long-term economic plan is the delivery of skills to the increasingly innovative and research-oriented manufacturing sector?

Oral Answers to Questions

Debate between Vince Cable and Neil Carmichael

Thursday 10th April 2014 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

15. What steps he is taking to improve productivity.

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

The Government’s approach to raising productivity is to deliver macro-economic stability through a combination of monetary activism and fiscal restraint, while implementing a programme of long-term structural change through the industrial strategy. This is giving firms and individuals the confidence they need to invest.

[Neil Carmichael]

In my constituency, we have several modern and forward-thinking firms, such as Renishaw, Delphi and ABB, which are all keen to make sure that they can recruit skilled engineers and a skilled work force—[Interruption.] The Secretary of State has sat down now. Does he agree that the long-term economic plan is pivotal because it deals with the need to make sure there is a pipeline of well educated young people entering the labour market?

[Vince Cable]

I apologise for remaining standing; I was so gripped by the question, I could not tear myself away.

I commend my hon. Friend for establishing what I think he calls the Carmichael commission in his constituency to look at ways to improve growth. He is right that having a pipeline of skilled staff is essential. I am familiar with Renishaw and I shall see the company tomorrow at the MACH exhibition in Birmingham. The crucial requirement is a long-term train of apprenticeship, at graduate and sub-graduate levels.

--- Later in debate ---

[Vince Cable]

The simple truth of the matter is that, as a result of discussions across the Cabinet and with the Minister for Universities and Science and myself, there is no cap on the number of overseas students. [Hon. Members: “There is.”] There is not. We want to maximise the number. We actively encourage them, and only this week there was a £1 billion contract signed with Saudi Arabia for higher education training in which we are a participant.

[Neil Carmichael (Stroud) (Con)]

T2. With the excellent news that manufacturing output year on year has increased by 3.8%, and with export week in mind, what steps is the Secretary of State taking to improve productivity so that we can further enhance the innovation of cutting-edge products and penetrate new export markets?

[Vince Cable]

That is a suitable rejoinder to the hon. Gentleman’s earlier question. The key point he made in his earlier question is that to drive productivity we need an adequate supply of trained people. I would add to that the emphasis we are placing on innovation and the establishment of the Catapult centres across the country. This is a new approach based largely on the German model and it is succeeding admirably.

Amendment of the Law

Debate between Vince Cable and Neil Carmichael

Thursday 20th March 2014 Commons Chamber

[Vince Cable]

I believe that about a third of the total number who are classified as “youth unemployed” are, in fact, engaged in full-time study. One of the big changes for which the coalition Government should take credit is the continued expansion in higher education: despite all the doomsday predictions from Opposition Members about the radical higher education reforms, the number of people going into higher education, particularly those from disadvantaged backgrounds, has risen.

[Neil Carmichael (Stroud) (Con)]

Does the Secretary of State agree that the issue of our productivity is linked directly to skills? Is it not rather ironic that the shadow Chancellor, who was Secretary of State for Children, Schools and Families, signally failed to help the nation to secure the right degree of skills—unlike us, with our long-term economic plan?

[Vince Cable]

Yes, indeed. I think that the apprenticeship model which we are now developing and expanding rapidly, in terms of both quality and quantity, is the remedy for the long-standing neglect to which my hon. Friend has rightly drawn attention.

Oral Answers to Questions

Debate between Vince Cable and Neil Carmichael

Thursday 13th June 2013 Commons Chamber

[Vince Cable]

I cannot tell the hon. Gentleman exactly how many, but I am happy to write to him about that. I launched the scheme and am therefore interested in seeing how successful it has been. Over the years we have all met constituents who have had appalling experiences with rogue builders. The existing system operating through trade standards has not been totally effective. This kind of branding will, we hope, bring more cowboy builders to account.

[Neil Carmichael (Stroud) (Con)]

4. What recent assessment he has made of the performance of the car manufacturing sector.

Oral Answers to Questions

Debate between Vince Cable and Neil Carmichael

Thursday 21st March 2013 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

In welcoming the industrial strategy being supported by £1.6 billion, I ask whether the Secretary of State agrees that we need to encourage our SMEs to start thinking about investing in tooling for components, especially in the automotive sector, because that is how we will further boost the values of our already impressive exports in cars?

[Vince Cable]

My hon. Friend is absolutely right that the issue in the industrial strategy is promoting not simply the prime contractors but the supply chains. These have been badly hollowed out in recent years, but there is quite a lot of evidence of re-shoring, and we want to support that with the advanced manufacturing supply chain initiative.

Industrial Strategy

Debate between Vince Cable and Neil Carmichael

Monday 10th September 2012 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

I welcome the Secretary of State’s focus on the aviation sector, particularly from the point of view of engineering. However, does he agree that a proper strategy for industry requires all aspects of engineering to be considered by most companies involved in any form of manufacturing and that we also need to give engineers a boost at boardroom level?

[Vince Cable]

The hon. Gentleman is absolutely right, but that requires a big cultural change, and that is beginning to happen. We see from university applications this year that engineering was the most popular subject among applicants, which suggests that we have been successful in recognising that engineering is an essential discipline.

Oral Answers to Questions

Debate between Vince Cable and Neil Carmichael

Thursday 8th December 2011 Commons Chamber

[Vince Cable]

Yes, I will certainly do that—that seems a very helpful intervention. As the right hon. Gentleman knows, logistics, including ports, were a major part of our work in the growth review. A lot is now happening to open up British ports and invest in them, and I will certainly pursue his inquiry.

[Neil Carmichael (Stroud) (Con)]

I am very much looking forward to welcoming the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), who is responsible for business and enterprise, to the festival for manufacturing in my constituency to celebrate what we have achieved in the constituency, and to promote more investment and employment. But one area that we need to focus on is the supply chain, so what are the Government planning to do to help with that?

Green Investment Bank

Debate between Vince Cable and Neil Carmichael

Tuesday 24th May 2011 Commons Chamber

[Vince Cable]

I take it that, despite the slightly carping tone of the response, the Opposition do support this proposal. It is important that they support it, because the concept of the green investment bank is that it should be an enduring institution that lasts through successive Parliaments. It is important that we have all-party support for what we are doing.

The right hon. Member for Southampton, Itchen (Mr Denham) seems to be claiming credit for this policy, which leaves me with a very simple question: why, in 13 years, did Labour not do it? The demand was there and there were institutional finances looking for such an institution, but it never happened. Why did the Labour Government not do it? They did have a financial vehicle to fund infrastructure investment: the private finance initiative. The whole point about PFI was that it was off balance sheet and the debt was hidden. It was not independently assessed as the green investment bank will be, and as a result numerous institutions, including hospitals and schools, have been lumbered with debts that they cannot manage. Our proposal is a soundly based financial institution leading with equity risk capital, which is what this kind of investment requires.

The Government present this, and I am a Business Secretary proud to lead on such an environmental initiative. The right hon. Gentleman referred to something I said earlier about carbon objectives. We must obviously strike a balance between promoting new green industries and jobs, which are absolutely crucial for growth, and taking proper account of energy-intensive industries, several of which are well represented on the Opposition Benches, such as the steel, ceramics and chemicals industries. Of course we must take those into account and manage the process by which the expansion of green industries takes place alongside proper regard for those industries. I am surprised that he is so insensitive to an important sector of industry that should be of concern to many of his Back Benchers.

The right hon. Gentleman asked about the timing of legislation. Legislation will be initiated once the state aid process has been completed, and we hope that that will take place rapidly.

The right hon. Gentleman asked specifically about less mature technologies, and he is quite right that there is a spectrum of activities of varying degrees of risk and maturity. There are institutions, including the excellent technology strategy board, to take on early stage technologies, and there are bodies such as the Carbon Trust to deal with early stage activities. The green investment bank has a specific role and mandate for projects that are high risk, but none the less mature and ready for commercial investment.

The right hon. Gentleman asked about the scale of the activity. I do not think that most people would regard £15 billion of investment as trivial, and such an undertaking by the end of this Parliament is very ambitious. He says, “Well, why don’t you just borrow more?” But that is the problem. We have an exceptionally high level of debt in relation to our GDP, and it is a painful process working it down, which is what the Government have been doing. It is frivolous and irresponsible to say that we can deal with those problems simply by borrowing more and adding to the debt.

[Neil Carmichael (Stroud) (Con)]

I welcome this excellent statement, because it describes an institution wholly appropriate to the needs of Britain, but will the green investment bank be able to support small and medium-sized businesses in a significant way? They are often the drivers of innovation.

[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.

Trade and Investment for Growth White Paper

Debate between Vince Cable and Neil Carmichael

Wednesday 9th February 2011 Commons Chamber

[Vince Cable]

I gave evidence to the Environmental Audit Committee about 10 days ago on the timing of the green investment bank. As I explained then, the business plan will be available in May. We assume that staff will be hired by the end of this year, and that loans will be made next year. I set out the programme and the road map when I was interrogated by the hon. Lady’s colleagues.

[Neil Carmichael (Stroud) (Con)]

I certainly welcome this statement, but I would like to probe the Secretary of State on the question of the European single market in connection with the ability of small businesses to form alliances and joint ventures with other small businesses in Europe. In addition, I would simply observe that SMEs in my constituency have a more than passing interest in capital allowances.

[Vince Cable]

I continue to hear strong representations about the value of capital allowances from, among others, the Engineering Employers Federation. That is clearly one of the things that the Chancellor will be mulling over before the Budget.