Oral Answers to Questions
Debate between Vince Cable and Roger Gale(9 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Vince Cable
I have discussed Rolls-Royce’s long-term strategy with its chief executive on several occasions. We are well aware that it is a global company, and that to maintain its strength it invests internationally, including in India. It is also investing a great deal in the UK, and we work closely with it, not just in the aerospace sector. The talent retention scheme is ensuring that the vast majority of the unfortunate individuals who lost their jobs in the restructuring will be redeployed in high value jobs in the aerospace and related industries.
Sir Roger Gale (North Thanet) (Con)
The aerospace industry is important not only to Pendle but to many constituencies in the United Kingdom. With that in mind I welcome the proposal to extend an enterprise zone to cover Manston airport, for aviation-related purposes only. I hope that the Secretary of State will feel able to give every possible encouragement to reopen the airport so that we can take advantage of that.
Sunday Trading (London Olympic Games and Paralympic Games) Bill [Lords]
Debate between Vince Cable and Roger Gale
Vince Cable
The different companies will avail themselves of the Bill to varying degrees and in various parts of the country. The whole purpose is not to provide a blanket provision; it is to provide flexibility, both in time and in different parts of the country.
Sir Roger Gale (North Thanet) (Con)
I am sure that my right hon. Friend knows that I have been opposed to Sunday trading since day one. I voted against it under Margaret Thatcher, and I am still opposed to it. Will he give the House an absolute assurance that under this Government—he cannot bind a future Government—the Bill will not be used to introduce a more permanent arrangement thereafter?
Vince Cable
Yes; I have already given that assurance to the right hon. Member for Oxford East (Mr Smith), and I can repeat it to the hon. Gentleman. That is absolutely not the intention of the Government. I do not think I need to repeat it again, but I am happy to do so—
Postal Services Bill
Debate between Vince Cable and Roger Gale
Vince Cable
That has been happening for 13 years and it has not solved the problem. The problem is deteriorating and the Government cannot provide the investment capital. The right hon. Gentleman is right about public opinion. The public are concerned about the universal service obligation. That is the essence of public service, and it will be protected. The protections will be strengthened under the Bill in a way that I will explain in a moment. When the public understand that it is the universal service obligation, rather than public ownership itself, that is being maintained, they will have considerable reassurance.
Mr Roger Gale (North Thanet) (Con)
I shall support Second Reading because Royal Mail is broke. It has to be fixed, which will take a considerable amount of money, and the Bill is the only way forward. The Secretary of State may consider this a peripheral issue but, since Queen Victoria, Royal Mail has borne the royal imprimatur. My understanding is that under European regulations, it is not possible to restrict ownership of Royal Mail once it goes on to the open market, so it could well be sold to the Dutch or the Germans. Notwithstanding the provisions of clause 60, how will the royal charter be maintained?
Vince Cable
We certainly do not have any doctrinal or other objections to foreign ownership. I spend a lot of my time trying to attract foreign investors to the country, but, as far as the royal charter is concerned, it is clear that the association with the monarchy is probably the most powerful brand that the company can possibly have, and there will be every interest in the new owners continuing to maintain it.
We need to be careful of specific issues. We need to be careful that the new owners do not abuse the royal association, and we are discussing with the palace how we build in those protections. The monarch will continue to have the right, which we are also building in, to ensure that any new stamp, for example, is cleared by the palace. So, the royal interests in the matter are fully protected. We are very sensitive to them and to their importance.
Let me return to the core of the argument, which is the sale of shares in Royal Mail. That is a departure from the previous Government’s Bill, but I should remind the House that the purpose of the Bill before us is not the sale of shares in Royal Mail for its own sake, but rather, as I pointed out to the right hon. Member for Croydon North (Malcolm Wicks) a few moments ago, the protection of the universal postal service and Royal Mail as the only company capable of providing it.
It is therefore right that we allow for the flexibility to seek the investment required to secure the future of Royal Mail and the universal postal service. So, we see no reason at this stage to set an arbitrary target for how much we must sell, by when and by which method. Those are critical decisions that need to be taken with proper advice and in the full knowledge of market conditions, assessing both value for money and the company’s needs.
Of course, Parliament will be kept informed of those decisions, and the Bill requires a report to Parliament once a decision has been taken to begin a sale process. I hope to be in a position to report to Parliament on the sale process in the first half of this Parliament. In the longer term, I do not believe that there is a need for the Government to keep a stake in Royal Mail, but I will ensure that the Government have the flexibility to ensure the right outcome for taxpayers, for Royal Mail and for its employees.
Let me turn to the interests and concerns of the employees. The employees are critical to Royal Mail’s ability to modernise and thrive, and it will come as no surprise to Members when I say that Royal Mail has a history of poor industrial relations. Members may have noticed that Unite announced two days ago that it would ballot Royal Mail managers on industrial action. That recent development aside, I have been heartened by some of the positive steps that have been taken to improve industrial relations—in particular, the agreement with the Communication Workers Union on the modernisation of the business. The agreement accepted that, unfortunately, job losses would be associated with the modernisation. It accepted, too, that there would need to be changes to working practices, and that mail centres would close. The plan has already been agreed with the CWU, and the company is implementing it now.