Consumer Rights Bill

Debate between Vince Cable and Richard Burden

Tuesday 28th January 2014 Commons Chamber

[Vince Cable]

There have already been discussions with the Northern Ireland authorities, and we plan to introduce the same measures in Northern Ireland. There is agreement on the subject. I cannot say off the cuff where we are in relation to Scotland and Wales, but there are discussions with devolved authorities to try to ensure that this is widely applied. Everyone agrees that these are improvements and it would be desirable if everybody throughout the UK benefited from them.

[Richard Burden (Birmingham, Northfield) (Lab)]

I was so fascinated by what the Secretary of State would be saying today that when I realised that I had missed the start of his speech I came hotfoot over here.

My point also relates to the issue of public services. On premium rate phone lines, the Government have said that all Departments should migrate to the use of geographic phone lines—03 lines—or others to ensure that consumers will not be charged rip-off rates by Government Departments. I welcome that, but will he give us some indication about when that will happen? The promise is good, but consumers need action.

[Vince Cable]

The hon. Gentleman is correct that an undertaking was made, which I understand is in process. Different Departments are proceeding at different speeds, but there is a commitment to do this. If he wants more information on it, I will try to get it to him. It is a perfectly legitimate complaint that people have.

The consumer law enforcement powers establish a primary authority to improve co-ordination. The enhanced consumer measures relate to the law and the gap between criminal and civil law in relation to consumer enforcement. At the moment, consumers rarely get their money back when a business breaks consumer law. That is partly because criminal courts are reluctant to award consumers redress and enforcers are often unable to seek redress in the civil courts. There is a common law remedy, but it is often difficult to realise it. What then tends to happen is that the more extreme cowboys are prosecuted on criminal grounds, but compensation, particularly for lesser levels of abuse, is more difficult to obtain. The legislation will enhance consumer measures to give enforcers greater flexibility to get the best outcome for consumers.

Oral Answers to Questions

Debate between Vince Cable and Richard Burden

Thursday 23rd January 2014 Commons Chamber

[Vince Cable]

My hon. Friend is right to say that in an environment where there is an acute shortage of professional engineers and craftsmen, there is a tendency to poach skills. We see that happening in other sectors, like the motor car industry, oil and gas and so on. The answer is to produce more engineers, and he will be aware that in his constituency, or certainly in the city of Plymouth, we have the 600-place university technology college, which is growing with support from the Government. That is a very positive step forward, and I am sure he will be pleased with it.

[Richard Burden (Birmingham, Northfield) (Lab)]

Does the Secretary of State agree that today’s good news from the automotive sector should encourage more people to become engineers, but that there is still a real issue to address to ensure that the automotive supply chain gets the engineers it needs and that young people are encouraged to go into it? Does that not involve doing more to ensure that training meets the needs of the supply chain and that small businesses in that sector get the investment they need, which requires a different approach from finance houses?

[Vince Cable]

The hon. Gentleman is right to say that the key challenge now faced by the car industry, which is a great success story, is to progress the success of OEMs—original equipment manufacturers—which are expanding, down through their supply chains, which were hollowed out in earlier years. We are addressing that issue through the Automotive Council and the industry strategy. That is progressing well, but it does need a great deal of support for the training base and the training of engineers, which is what we are doing through our apprenticeship programme.

Oral Answers to Questions

Debate between Vince Cable and Richard Burden

Thursday 14th July 2011 Commons Chamber

[Vince Cable]

The hon. Gentleman is absolutely right that quality is important as well as quantity, but it is important that the quality assurance is proportionate and does not result in excessive bureaucracy. The best evidence that apprenticeships give value for money is in the results. Typically, employers get payback in three years. An intermediate level of skill, level 2, results in, I think, £73,000 more over a lifetime. A level 3 qualification produces £105,000 added income over a lifetime, and the Government get £40 back for every £1 that they spend on apprenticeships.

[Richard Burden (Birmingham, Northfield) (Lab)]

On the future of apprentices, has the Secretary of State yet had a chance to look at the new report from the all-party parliamentary motor group about an industry that supports 700,000 jobs and contributes £1 billion towards research and development? One of the conclusions of the report, to which Ministers in the Department have contributed through discussion, is about the skills gap in the automotive industry. The Secretary of State has referred to the skills gap in engineering before; what practical steps can he take to ensure that the issue is addressed?

[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.

Department for Business, Innovation and Skills (Performance)

Debate between Vince Cable and Richard Burden

Wednesday 2nd February 2011 Commons Chamber

[Vince Cable]

The right hon. Member for Southampton, Itchen made a wholly wrong assertion. The system of immigration for skilled workers was substantially modified to remove intra-company transfers from immigration control. If there are particular cases involving particular companies, I shall be happy to pursue them. As it happens, I met Mr Gallois yesterday and the issue was not raised, but I will happily pursue any specific cases.

Let me now deal with another issue. A few moments ago, I received a challenge. Why, I was asked, did we not move away from some of the messes that we had inherited, and concentrate on the issues relevant to business growth? Let me start with an issue that is absolutely critical but does not merit even a word in the motion—regulation.

We inherited a system in which five new regulations were introduced every day, at a cost to the business sector that was independently assessed at £80 billion— about 5% of GDP. A few days ago the Minister of State, Cabinet Office discovered a book, only one copy of which is in circulation, of all the regulations that had been accumulated. Some 22,800 were bearing on businesses and adding enormously to their costs—

[Richard Burden (Birmingham, Northfield) (Lab)]

rose—

[Vince Cable]

I shall finish this point and then give way. What we have done is, first, establish a process to stop the accumulation of regulation. Last week, with the support of the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for Kingston and Surbiton (Mr Davey), I started attacking an issue that is a particular concern to small business: the problem of tribunals. I believe that there are almost 250,000 such cases a year, many of which are frivolous. They are being brought by people who are not required to pay any fee in order to be heard before the tribunal. We are trying to establish, following a consultation, a level playing field to help small business deal with the problems established by the tribunal system. In future all cases will go through a mediation process before they get into the costly and disruptive process of a tribunal. It is worth remembering that the previous Government tried twice to reform this process, but backed off on both occasions, under pressure from the people who pay their bills.

--- Later in debate ---

[Richard Burden]

A little earlier, the Secretary of State answered a question about the west midlands, so may I tell him what is worrying people and businesses there? On 28 October he made a statement on local growth, and his answer to everything in terms of industrial and other assistance was, “There will be a regional growth fund.” That fund is oversubscribed and the rules have been changed at the last minute—although the Government have denied that they have done that. In Birmingham and the west midlands, the vital infrastructure projects for Birmingham airport and the regeneration of Longbridge look like being left high and dry. In practical terms, what confidence can he give to people in the west midlands that he will stand by them on such things?

[Vince Cable]

Rather than prejudge what the first tranche of the regional growth fund will be, let us just wait for the outcome and decide which projects will proceed on the basis of the independent evaluation that they have had.

Local Growth White Paper

Debate between Vince Cable and Richard Burden

Thursday 28th October 2010 Commons Chamber

[Vince Cable]

Yes, we will. In fact, one of the most imaginative and interesting LEPs is what we call the coast-to-capital LEP, uniting the south coast towns with southern London. That is exactly the kind of geographically based, common-sense approach that we want to encourage. It will link London with those parts outside the capital with which it has a natural economic affinity.

[Richard Burden (Birmingham, Northfield) (Lab)]

In his opening remarks, the Secretary of State said that the thing that local enterprise partnerships will have is partnership. May I press him a little more on whether they will actually have any money to chase such things as the regional growth fund? Will any money be allocated for running costs, or will the money for LEPs come from children’s services, emptying the bins and other local authority spending on front-line services?

[Vince Cable]

The Government are not providing the LEPs with a budget, but that is not to say that the partners, which include local authorities and businesses, cannot contribute to something that is in their self-interest.

Industry (Government Support)

Debate between Vince Cable and Richard Burden

Wednesday 16th June 2010 Commons Chamber

[Vince Cable]

The Chancellor of the Exchequer made a very good statement earlier, setting up the commission that will look at the structure of banking. Indeed, we are working together on improving the very poor performance of the banking sector in terms of credit to small and medium-sized lending. The record of the Labour party is terrible in that respect, and we will improve on it.

It is clear that the last Government had an industrial policy. I cede that point. We have to go back to the seminal moment when the former Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath, made one of his famous factory visits—to the headquarters of Lehman Brothers in London—and announced:

“I would like to pay tribute to the contribution you and your company make to the prosperity of Britain”.

The consequences of that policy are with us today, in the costs of the collapse, the recession that followed and the enormous problems that we have inherited. That was the industrial policy; that was the imbalance of which hon. Members complain.

[Richard Burden (Birmingham, Northfield) (Lab)]

I welcome the activist approach towards banks that the Secretary of State is outlining. He will be aware that the House has debated the situation of former workers at Longbridge who are still waiting for money from a trust fund promised to them in 2005. At the moment, that seems to be being held up by an argument between Lloyds Banking Group and the Phoenix Four. Will he get involved to try to ensure that they finally receive the money that they deserve and which they were promised so long ago?

[Vince Cable]

I was in Birmingham last week, and people affected by that problem have approached me—indeed, the city council also raised the matter with me—and I have asked for it to be investigated. It is a complex legal problem, but clearly it needs looking at.

I shall proceed to the second statement in the motion with which we agree. The Labour spokesman was explicit, forthcoming and realistic about cuts. The motion reads:

“That this House notes the need for a clear deficit reduction plan”.

It is now going to get one, because on Monday we launched the Office for Budget Responsibility. We now have believable and independent growth numbers on which to construct a budget strategy, and next week the Budget will spell that out in more detail.