(9 years, 7 months ago)
Commons ChamberI recall that when I lived in Scotland, Ravenscraig was still producing as an integrated producer. I do not know the history of why it was closed, and I doubt the conspiracy theory. I suspect that the industry was under a great deal of pressure. The simple point to make is that the industry has been contracting over three to four decades, both under British Steel—some Labour Members might remember the name of Mr MacGregor—and subsequently under privatisation, so it was not ideological.
Before I finish the point about the historic trends, let me say that the decline in employment has been far more dramatic and far more brutal than the decline in output. It is worth recalling that, back in 1980, 155,000 people were working in the industry, and there are now 20,000. We are down to little above a 10th of the total labour force. There were two major spasms when this occurred. One was between 1979 and 1981, when the industry halved in manpower—a very difficult phase. Then, during the period of the last Government, the level of employment halved again after 1997. The question we now face is whether we can avoid another spasm of contraction as a result of the difficulties faced by several leading producers, particularly Tata.
On the topic of jobs, looking to the future, what binding guarantees are the Secretary of State and the Government obtaining from Klesch about maintaining jobs and ensuring greater steel capacity in the UK for the future?
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Because we no longer own Royal Mail—we are a substantial minority shareholder—we do not dictate to it what its manpower policy should be. Many jobs were of course lost under public ownership. As I understand it, the proposal currently being put forward, and which is being contested by Unite, relates primarily to white collar executives rather than members of the Communication Workers Union, but that is a matter for them to resolve.
Is not Royal Mail’s property portfolio turning into a property speculators’ goldmine?
(11 years, 1 month ago)
Commons ChamberFirst, I should explain that the Minister for Universities and Science, my right hon. Friend the Member for Havant (Mr Willetts), who might have answered this question, is currently at Chequers for a Cabinet away day. My hon. Friend the Member for Colchester (Sir Bob Russell) is an assiduous defender of his constituents, their companies and their jobs. He has discussed this matter with me, and I have pursued it. It is not the case that Britain is more difficult than the United States when it comes to clearing export licences, but I have none the less established that we should dispense with some procedures relating to quarterly reporting, and we will do so. We will also work with the company in question to try to establish whether an open general licence can operate in this case.
A survey by the Federation of Small Businesses has found that only one in five of its members uses UKTI services. What steps will the Secretary of State take to encourage UKTI to work more closely with small businesses?
(11 years, 5 months ago)
Commons Chamber19. Which measures in the Government’s growth plan his Department has not yet implemented; and if he will make a statement.
Yesterday, the Government published a progress report on implementation of the plan for growth and the autumn statement 2011. All measures are being implemented and almost two thirds of the measures are now complete—up from a quarter at Budget last year. We are on track for delivery.
The Government have announced the electrification of the Ebbw Vale to Cardiff line, but in advance of that we need to redouble the line to improve train frequency. Will the Government work with the Welsh Government to ensure that the finance for this shovel-ready project is delivered before the next election?
I am delighted to hear an acknowledgement that after many decades of decline in the railway system we now have a major investment in railways and a rail revolution taking place. The hon. Gentleman raises a specific point that I am happy to follow up with the Welsh Government.
(11 years, 11 months ago)
Commons ChamberSeveral local enterprise partnerships are specialising in developing the rural economy—the hon. Lady’s LEP is one of them. Such development should be dealt with properly at that level. At my level, I look forward to talking to the new Secretary of State for Environment, Food and Rural Affairs about how we integrate economic development and rural development.
Three hundred and sixty of my constituents have told me that they value our local post offices. May I press the Minister to allow the post office network to allow the DVLA to have that contract for the future? Why will she not commit to doing that?
(13 years, 2 months ago)
Commons ChamberT6. Given the public outrage at the “quick buck” strategy at Southern Cross, the Financial Times says that the future of 31,000 elderly people is in jeopardy. Will the Secretary of State investigate the conduct of the directors and consider whether regulation should be extended to ensure the financial stability of companies that care for our parents and our relatives?
My colleague the Secretary of State for Health has made it absolutely clear that no resident, whether publicly funded or self-funding, will be left homeless or without care. In other words, the residents will be given priority and the Government have taken the responsibility to ensure that they are protected. As to the company itself, it had a long-standing failed business model. The Minister of State, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes) has been in touch with the banks to ensure that the credit is properly managed in this critical period so that it happens in an orderly way. There is no way in which we can bail out the company, but I have asked my officials to look carefully at the business models of companies that provide public services to ensure that they are stable and that the responsible sector regulators are able to act appropriately.
I am not sure that I am yet in a position to be a beauty parade judge, but they are all beautiful cities, including Bristol.
Like other colleagues, I note that the Secretary of State is still considering where to base the green investment bank, and I see that there is a possibility of its going to Bristol. May I ask him to look across the Severn river and base the HQ in south Wales, given that investment in the Severn barrage has been stalled?
This is slightly in danger of getting out of control, but I compliment the hon. Gentleman on his nerve in pursuing it.
(13 years, 4 months ago)
Commons ChamberEnvironmental regulation is covered by the moratorium that I have just described. Of course, if it is European Union regulation, we cannot unilaterally disband it, but we can ensure that there is no gold-plating, which is why we are following a minimal copying-out procedure for EU legislation.
The regulation of business is important for promoting employment. In my constituency, youth unemployment is 30%, which is way too high, so will there be an enterprise zone to look at business regulation and employment in the south Wales valleys?
As I discovered when I discussed the matter with them on Monday, the Welsh Assembly Government have responsibility for designated enterprise zones. I hope they will follow the model we are pursuing in England, and indeed we strongly commended it to them.
(13 years, 5 months ago)
Commons ChamberI am not going to take any more interventions.
I return to the issue of fairness. When we first came into office, the major attack from the Opposition was that we were going to hit the poorest hardest. When it became clear that we were producing policies to protect the state pension, increase child tax credits, give preferential treatment to low-paid workers in the public sector and lift low-paid workers out of tax, attention shifted to the so-called “squeezed middle”, which has been variously defined to encompass 90% of the population.
The truth of the situation is that as a result of the financial crash and the recession that followed, Britain is a significantly poorer country than we were several years ago, so living standards have been squeezed. As the Governor of the Bank of England said,
“the real consequences of this crisis are only now beginning to be felt.”
What we have done in the Budget is take concrete action on fuel duty and on lifting the thresholds at which low earners pay tax. I shall dwell on that point a little—
Let me finish this point. One genuine philosophical difference we have with the Opposition is on how best to help those on low and modest pay. The Opposition believe in using targeted means-tested benefits. By contrast, we believe that the best way of doing this is by lifting low earners out of tax—880,000 on 1 April and 260,000 more next year. In this way, we not only lift them out of tax but reinforce the incentive to work and to save alongside the welfare reforms. Other taxpayers received £200 in cash last year and will get £126 more next year. We believe that in tough times, we should let taxpayers—especially the low-paid—keep more of their own money, rather than taking it off them and giving some back through complex means-tested benefits.
The test of the Budget will not be the response of the political world or this debate. It will be the response of the business community, which has to invest for recovery. It is worth reviewing what the business community has said about the Budget as it has often been critical of Budgets in the past. The British Chamber of Commerce said:
“Despite tight fiscal conditions we are encouraged that the Chancellor has prioritised business growth and private sector expansion alongside deficit reduction”.
The Engineering Employers Federation—the manufacturers —commented:
“The Growth Review has now started to deliver tangible progress in removing the barriers to growth investment and job creation in the UK”.
And the CBI concluded:
“This budget will help businesses grow and create jobs”.
The Government recognise that the road back to balanced, sustainable recovery will be painful and difficult, but we are on the right track. As the head of the OECD put it, we must “stick with it”.
(13 years, 7 months ago)
Commons ChamberT5. The new enterprise tsar, Lord Heseltine, said in Cardiff this week that 400,000 new jobs will be created in the private sector in the next five years. Will the Minister tell us how many of these jobs will be created in Wales?
The Welsh position with respect to regional development is different from the position in England, but I will be going to Wales shortly, together with the Secretary of State for Wales, to talk about how we can promote manufacturing and enterprise there.