(11 years, 3 months ago)
Commons ChamberThat should not be the case, and the Prime Minister has gone out of his way—as he did on a recent visit to India—to make it clear that we welcome valid, legal overseas student visitors to the UK. That is our policy and we are encouraging it.
Will the Secretary of State confirm to the House that there is no cap on the number of students who can study in the UK if they attend and have a place at a proper university?
That is true and the core of the policy. There is no cap on legal immigration for students, not just for universities but also properly accredited colleges. There is also a right to work subsequently in graduate-level employment, and I hope that that information will be made more widely available.
The second crucial group of people are those with key skills. The Government exempt intra-company transfers from the cap on immigration. There are many key individuals in management, banking and engineering specialties, and in a highly specialised economy we will have more and more demand for services of that kind. The Home Secretary has gone to considerable lengths to remove some of the impediments surrounding visas for people who are needed by British industry and are an important part of our economy.
Yes, there is an issue with the demand for loans. It is not simply a question of aggregate demand in an economic sense. Many small companies have been discouraged from applying and we need to overcome that handicap. On the wider question, I know that the Chancellor is listening carefully to this debate. I read the contribution of the former Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), who suggested that the key issue was value for money for the taxpayer. I agree completely.
I thank the Secretary of State for giving way once again. Does the intervention from the hon. Member for Streatham (Mr Umunna) not highlight the confusion in the Opposition’s approach to RBS and state-owned banks? On the one hand they want the Government to compel them to lend, and on the other hand they say that the banks should return to health and make a healthy profit for the taxpayer. Those are two conflicting positions. That is why schemes such as funding for lending, which help banks get money to small businesses, are the right way forward.
Funding for lending is an important and valuable step forward. As I am sure my hon. Friend would acknowledge, it predominantly affects the mortgage market rather than the SME lending market, but it is an important initiative. I do not think that we are talking about forced lending here, and we should not be talking about that; we should be talking about how we change the risk appetite of banks. Some of the Government’s key interventions, such as the enterprise guarantee scheme and the new schemes for export finance, are crucial to changing the balance of risk. They work with the grain of the market, and that is the way we should deal with this issue.
I conclude on the banking issue, because it is the big legacy problem we have to deal with, along with the enormous deficit, which is painful and difficult but on which we are making real headway. The key point is that despite those problems, some real signs of hope are beginning to emerge: we have rapid growth in private sector employment; record levels of start-ups in the private sector; a growing sense of entrepreneurial energy and commitment in the UK; and a rapid growth in exports to some of the emerging markets, where future demand lies. There is every reason to be optimistic, and the legislative programme we are setting out will reinforce those positive trends.
We will obviously look at any proposals on their merits, but our current regulatory system does have a micro-business exemption and we test all our proposals against that possibility. My hon. Friend should perhaps look at the FSB’s submission, because one of the problems the small business sector often highlights is that it does not wish to be regarded as a second-rate tier of employment that is colonised by cowboy employers. It makes it very clear that it is small businesses that resist the segmentation of the labour market.
Does the Secretary of State agree that the current employment tribunal system is not simple, transparent or inexpensive for employers, because for many of them dealing with an individual case or a class action-type case is incredibly expensive and long-winded, and that serves as a barrier to businesses hiring new staff? They know that if things go wrong it is very complicated, so simplifying the system and enabling them to deal with it without resorting to disputes should be the way forward in the Bill.
I totally agree with my hon. Friend, who anticipates many of the things I will say. He is absolutely right that the process is very cumbersome and time-consuming. There is currently an enormous backlog of 430,000 cases and it is very costly, particularly for small companies. The whole thrust of the changes I want to introduce relates specifically to making the tribunal system much simpler and avoidable where possible.
I was going to mention that measure at the end of my speech. We see it essentially as a bit of legislative tidying up; we are not going to argue that it has significant impacts on business. However, we can pursue the detailed implications.
The Bill introduces further measures and makes it possible to include a sunset or review clause in any new secondary legislation to ensure that legislation is fit for purpose and is regularly reviewed. It also extends business eligibility for the highly successful primary authority scheme, which allows firms to get assured advice from one local authority on a particular regulatory issue. Often what businesses find most bewildering is not the regulation itself—they recognise that rules are often necessary—but the inconsistent application of the rules so that they have to adjust their systems depending on the whim of a local official. The primary authority scheme deals with that.
On reviewing regulations that have already been passed, one regulation that springs to mind is the agency workers directive, where, on issues such as pay, bonuses and holidays, we have gold-plated what Brussels originally introduced. In so doing, we have made what is supposed to be flexible, temporary work more like permanent work, which it should not be. Would we be able to review that legislation under the sunset clause that the Secretary of State mentioned?
This would not be the context in which to do it, because it is, of course, now part of the law. We have looked at this in considerable detail because a lot of concern has been expressed about it. The UK’s implementation of the agency workers directive came about as the result of a negotiated agreement between employers and employees and their representative bodies. We explored the possibility of easing some of the burdens on business arising from the directive and came to the conclusion that in practice we could not do so. However, I hear the hon. Gentleman’s concerns, which were expressed by many companies.
I understand that the TUC and the CBI, as European social partners, were very involved in the negotiations between employees and business, but representatives of small businesses were not, despite the fact that the impact of such legislation on small businesses can be particularly draconian. I urge the Secretary of State to consider a way of reviewing the gold-plating of such legislation, especially where it applies to small businesses.
I have an open mind if the hon. Gentleman has good ideas as to how that can be done. We have committed ourselves to removing the gold-plating of European legislation as it applies to Britain, and if he has good, constructive ideas, we are happy to look at them.
(13 years, 7 months ago)
Commons ChamberI am aware of the importance of the automobile industry in the hon. Gentleman’s constituency, where I have seen the excellent Vauxhall operation. Specifically, we are working through the Automotive Council, of which I think he is aware, and with which all the leading manufacturers in the UK are associated. One of its earliest decisions was on deepening the British supply chain, and several companies have already reported that that process is happening in a positive way.
I thank the Secretary of State for his answers so far on bank lending. A lot of risky start-up businesses still rely on business angels and friends and family to invest equity. What are the Government doing to plug that equity gap so that people can start up new businesses, employ people and get the economy growing?
The hon. Gentleman is an authority on this; I think that he was entrepreneur of the future several years ago. We do have the growth funds that provide equity. He may also have noticed that as a result of our discussions with the banks, they have established an equity fund in order to achieve precisely the aims that he describes.
(13 years, 10 months ago)
Commons ChamberI am in constant touch with the National Union of Students. We have a very good dialogue with its representatives. They have made suggestions, some of which are helpful and some of which involve very substantial reductions in the amount of student maintenance support, to keep fees down to a level that they would prefer. We are continuing the dialogue. We welcome it, and it is good natured. We disagree on this particular point.
Will the Secretary of State confirm that the current system, in which students incur debt that they have to pay back when they finish, and do not have any advice or support in choosing the right courses or understanding their employability when they finish them, is significantly worse than what is being proposed today, which is more support and advice?