Oral Answers to Questions

Greg Clark Excerpts

Tuesday 19th March 2019 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

The best way to support people is to make sure that they have a job. Today it was announced that more people are employed in our country than ever before. Unemployment has fallen to 3.9%, its lowest since 1975. Our pay rose in real terms over the past year by 1.3%, and over the past year 96% of those new jobs have been full time.

[Judith Cummins]

Too often, workers have eight or 10-hour contracts, but are then expected to work up to 60 hours when their employer demands it, with no flexibility in return. One concrete step that the Government could take to protect these insecure workers is to ensure that contracts reflect the hours that people normally work. Will the Minister commit to legislating for this?

[Greg Clark]

I am slightly surprised to hear that from the hon. Lady because she knows that we have taken measures to give workers the right to request that stable contract. She will know that in her own area Bradford Council is a very good exponent of that. It was advertising last night for casual commis chefs, saying that hours are offered on a “casual basis” and may be withdrawn by either party, giving a minimum of two hours’ notice. If she wants those rights to be extended, I suggest that she talk to Bradford Council first.

[Mr Philip Hollobone (Kettering) (Con)]

Can the Business Secretary confirm that there are more people in our nation in secure employment than ever before in our history and that the number of people on zero- hours contracts has fallen by 100,000 in the past year alone?

[Greg Clark]

My hon. Friend is absolutely right. Obviously, it is a great source of confidence to people that they can obtain a job. It is the case that employers across the country value the flexibility that having a flexible workforce gives. In fact, again, the Labour leader of Gateshead Council said that

“many zero-hours contracts employees”

on the council

“don’t want to be full time employees and prefer to consider themselves as self-employed”,

so this is a practice that is pursued right across the country.

[Rachel Reeves (Leeds West) (Lab)]

Some 1.6 million workers are paid exactly the national living wage of £7.83 an hour, and a further 3 million people are paid within 50 pence of it. In the spring statement last week, the Chancellor said that the ultimate objective of this Government was

“ending low pay in the UK”—[Official Report, 13 March 2019; Vol. 656, c. 349.]

The usual definition of a national living wage is 66% of median earnings, but the remit of the Low Pay Commission is only to get to 60%. Are the Government now committing to end low pay? If so, when?

[Greg Clark]

The hon. Lady should recognise the commitment to 60% and the progress that has been made towards that, which meant a very big pay increase for many of the lowest paid workers in the country. She will remember that the Chancellor announced a review in his statement last week to look into where we go beyond that, using international best practice to inform such a decision. I hope that the Business, Energy and Industrial Strategy Committee, which the hon. Lady chairs, will want to contribute to that review.

[Maggie Throup (Erewash) (Con)]

Matthew Taylor’s recent review of modern working practices indicated that a blanket ban on zero-hours contracts would create more cliff edges for employers and workers. Does my right hon. Friend agree with that analysis?

[Greg Clark]

I do agree with that analysis and with what my hon. Friend has said. The conclusion of the panel in that completely independent report was:

“To ban zero hours contracts…would negatively impact many more people than it helped.”

It is right to ensure that there is an ability to request a stable contract and that people are not banned from working for different employers, but to remove these contracts all together would be against the practice of many employers, including councils.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

16. The National Union of Rail, Maritime and Transport Workers continues to receive evidence of seafarer pay as low as £3.60 an hour, including on UK-registered vessels. Employers in the ferry sector are continuing to reflag their ships. When will the Government take action to ensure that the national minimum wage provides a basic safety net for seafarers’ pay, including on international routes?

[Greg Clark]

I share the hon. Gentleman’s concerns. In the last few weeks, I have been discussing with the trade unions how any loopholes that might be being exploited should be closed. It is the intention of everyone across the House that the law should be obeyed and that workers should be paid a fair rate for their work.

[Nigel Huddleston (Mid Worcestershire) (Con)]

Does the Secretary of State agree that it is often the UK, not the EU, that has led the way on workers’ rights, and does he expect this to continue?

[Greg Clark]

I do indeed expect this to continue. Many of the rights that we have introduced—including, for example, the right to request a stable contract—were pioneered in this country, and are only now being taken up by other European countries.

[Laura Pidcock (North West Durham) (Lab)]

A couple of weeks ago, Labour colleagues and I crossed the road to Parliament Square to talk to outsourced Department for Business, Energy and Industrial Strategy workers from the Public and Commercial Services Union and the Independent Workers Union of Great Britain, who were demanding equal terms and conditions with directly employed staff. They were disappointed that no Minister from the Department came to talk to them. If anyone had, they would have heard how people’s status as contracted-out workers is a fundamental cause of their insecurity.

We have heard fine words from the Secretary of State about workers’ rights recently, yet here is an example of workers being forced into precarious contracts under his very nose. Will he outline what he is doing to put his own house in order to help resolve this dispute? In the process, will he learn the lesson that outsourcing is the cause of insecurity and poverty pay?

[Greg Clark]

I value very highly the work of all the staff in my Department. I met some of the staff she has mentioned, who were affected. I asked my officials to review the comparable levels of pay that such staff receive, and those pay rates have been increased as a result. It was a good and constructive discussion with my much valued colleagues.

[Patrick Grady (Glasgow North) (SNP)]

2. What recent discussions he has had with the Chancellor of the Exchequer on fiscal support for businesses based in Scotland making preparations for the UK leaving the EU.

[Angela Crawley (Lanark and Hamilton East) (SNP)]

8. What recent discussions he has had with the Chancellor of the Exchequer on fiscal support for businesses based in Scotland making preparations for the UK leaving the EU.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

I have regular discussions with the Chancellor about support for businesses in Scotland, as well as in England, Wales and Northern Ireland. As the hon. Member for Glasgow North (Patrick Grady) will know, last Wednesday we announced up to £260 million for the borderlands growth deal, which is a cross-party—and clearly a cross-border—partnership that has been hailed as a game changer by all the bodies involved, including the Scottish Government. As the hon. Gentleman knows, the best way to support business in Scotland is to end the uncertainty that comes from Brexit and to join the Government in agreeing a deal.

[Patrick Grady]

Actually, the best support for businesses in Scotland would presumably be for Scotland to stay in the European Union, because IDA Ireland reckons that its country has gained more than 5,000 jobs as a result of Brexit-related investment, so it is a little bit perverse that it seems to be that the countries staying in the European Union are enjoying the benefits that were supposed to come from leaving.

[Greg Clark]

The best chance for Scotland to enjoy prosperity in the future is to stay in the United Kingdom, and I hope the hon. Gentleman would support that. I am very surprised that he would mention jobs in the Scotland when, under the SNP, jobs growth in Scotland has been far behind the good statistics that I was able to give for the whole country. Indeed, if Scotland had matched the rate of job creation in England, there would now be nearly 200,000 more Scots with a job.

[Angela Crawley]

An Ernst & Young survey found that only 8% of Scottish firms feel fully ready for Brexit. Does the Secretary of State regret his failure to accept the SNP’s and the Institute of Directors’ demands for a £750 million support service to help small and medium-sized businesses to navigate Brexit?

[Greg Clark]

No. Advice and support are available to every business across the United Kingdom, including, of course, businesses in Scotland. I work very closely with the Scottish Government. They are represented on the groups that are developing the contingency plans for a no-deal Brexit, and businesses are included in that.

[Mr David Davis (Haltemprice and Howden) (Con)]

In Scotland, as in the rest of the United Kingdom, there are grants of up to £1,050 per employee for training employees, and up to £200,000 for new IT systems for dealing with new customs arrangements. Given the importance of this, why is it not more widely advertised both in Scotland and in the United Kingdom?

[Greg Clark]

My right hon. Friend makes an excellent point. As he knows from the industrial strategy—he was closely involved in its construction—grants and assistance for training, especially for employees whose jobs change as a result of technological change, is a very important contribution that we can make, and I am glad that he has brought it to the attention of the House.

[Stephen Kerr (Stirling) (Con)]

What discussions has my right hon. Friend had with the Chancellor of the Exchequer about making sure that the UK shared prosperity fund is UK-wide and allows the UK Government to work with public and private partners across the whole of the Union?

[Greg Clark]

My hon. Friend makes an excellent point. That is absolutely the intention. The fund will be UK-wide and continue the progress that has been made, not least through the city deals programme. All the major cities of Scotland have benefited from a city deal that embraces the UK Government, the Scottish Government, and local authorities. That is a good model that is working and is successful.

[David Duguid (Banff and Buchan) (Con)]

3. What steps his Department is taking to promote clean growth.

--- Later in debate ---

[Kirstene Hair (Angus) (Con)]

22. What steps he is taking to ensure that renewable technologies form part of the energy mix.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

The UK is leading the world in decarbonising our energy supplies while driving down the cost of clean power. The proportion of our electricity coming from renewables has increased fourfold since 2010, and the cost of clean power is falling fast. The price of offshore wind has fallen by 50% in the last couple of years.

[Ruth George]

The Secretary of State has just recognised that there is considerable support for renewable energy throughout the country. My local community in High Peak have always been committed to that. “Archie”, the Archimedes’ screw in New Mills, is the first community-owned hydroelectric project. However, the Government are preventing people from becoming involved in renewable energy projects by removing the feed-in tariff and refusing to remove planning blocks on onshore wind, while forcing councils to plan positively for fracking. Will the Secretary of State recommend the scrapping of that policy, and instead require councils to plan positively for renewables?

[Greg Clark]

I think the hon. Lady should recognise the huge progress that has been made, which is beyond what anyone would have expected 10 years ago when the Climate Change Act 2008 was passed. I commend her constituents for their contribution in respect of renewable power. However, as my right hon. Friend the Minister for Energy and Clean Growth has said, the right mechanism must be applied to the right technology. It is better to finance technologies in the early stages of development through innovation funding than to pretend that they can make a significant contribution to the grid.

[Kirstene Hair]

A renewables mix is hugely important in securing our long-term energy supply, so will the Secretary of State meet me to discuss some of the contradictory barriers in place for solar power, for example, because there are limited technologies that are able to bid for support through the contracts for difference scheme?

[Greg Clark]

I will indeed meet my hon. Friend, and I am sure that my right hon. Friend the Minister for Energy and Clean Growth will join that conversation. We have a good record in bringing on a range of new technologies and I am very happy to make sure there are no barriers to that.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

There will now be a 9 GW cut in future installed capacity by 2030 as a result of Toshiba and Hitachi ending their plans to build three new nuclear power stations. The Secretary of State has also cancelled plans to build tidal lagoons possibly providing about that amount of additional capacity, has banned onshore wind and has run down new solar installations. He has severely limited the auction for new offshore wind to only £60 million of a possible £557 million. Does the Secretary of State agree that on present policies it looks like there will be a substantial capacity gap in power production against likely 2030 demand? Does he have any plan to deal with that? Does he have any plans to revive the lost nuclear power proposals? Does he share the Opposition’s view that, among other things, we will need at least 50 GW of installed offshore wind to help close the gap and meet our climate change commitments?

[Greg Clark]

Quite the opposite is true. One of the reasons why it has proved impossible to finance privately some of these nuclear power stations is that the cost of renewables was falling and the availability was increasing so rapidly that they are being muscled out of the system. The forecast electricity margin for this year is now over 11%, the highest for five years. To put this into context for the hon. Gentleman, the contribution that the Wylfa nuclear power station—3 GW—would have made was procured in a single contract for difference auction for offshore wind. That shows the abundance that we have, rather than the shortage.

[Clive Lewis (Norwich South) (Lab)]

14. What steps he plans to take to support small and medium-sized renewable power generators after the scheduled closure of the feed-in tariffs scheme.

--- Later in debate ---

[Mr Philip Dunne (Ludlow) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

One of the frustrations about the dominance of our Brexit debates over the last two years is that insufficient attention is given to the fact that this is one of the most exciting times for British industry and commerce since the first industrial revolution, which was forged in this country. We are in the vanguard of so many of the industries of the future. Earlier this month, my right hon. Friend the Energy Minister was in Lowestoft and, again, in Grimsby to launch the offshore wind sector deal—the 10th sector deal in our industrial strategy. It is helping Britain to procure a third of its electricity through offshore power by 2020, to provide a lead right around the world and to export good technology.

[Mr Dunne]

I share my right hon. Friend’s optimism and enthusiasm for the opportunities that lie ahead for this country. Following the Chancellor’s statement last week, when specific measures were announced, which I welcome, could he elaborate on how he expects the UK to take a lead in science and innovation to develop new technologies for renewables, which he touched on, and new materials?

[Greg Clark]

My right hon. Friend is correct that our reputation for science and innovation, and the standing of our universities, are among the best in the world. At a time when every country around the world is investing in the technologies of the future, we need to emphasise the abilities and talents we have. Through the industrial strategy, we have the biggest increase in public and private sector spending and innovation that we have ever had in this country. It is already making a difference, but we have more to do.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

Our automotive sector is facing significant challenges. To quote the Society of Motor Manufacturers and Traders,

“There is a perfect storm of a hostile global trading environment, the imminent threat of significant tariffs on cars exported to the US, rising costs, technological revolution and the already damaging impact of Brexit on the UK industry”.

This perfect storm has already claimed some victims: Honda in Swindon, the loss of the production of the X-Trail and Infiniti models in Sunderland, and the loss of thousands of jobs at Jaguar Land Rover and Ford. The sector needs immediate and substantial support. Does the Secretary of State think the Government are doing enough?

[Greg Clark]

I am glad the hon. Lady recognises the importance and effectiveness of our automotive sector. She is absolutely right that the acceleration of the shift to new technologies is affecting the sector in every country around the world. Through our industrial strategy, agreed with the automotive sector through the sector deal, and the Faraday challenge, we are advancing our position in battery technology. That makes sure that, when the new generation of batteries are produced, they are produced in Britain, guaranteeing our future.

[Rebecca Long Bailey]

Those are warm words from the Secretary of State, but actions speak louder. On Brexit, his Government have threatened a catastrophic no deal and run down the clock. On rising costs, the Government have allowed costs such as industrial electricity prices and business rates to disadvantage UK manufacturers. On electrification, the Government have allowed us to fall behind. The planned charging infrastructure investment fund is still not in operation 16 months after it was announced, and subsidies for electric vehicles have been cut. Is not the truth that this Government are failing to provide the automotive sector with the support it needs to weather this perfect storm?

[Greg Clark]

We are the leading country in Europe when it comes to the production of electric vehicles, and as the hon. Lady is well aware, we have, through the industrial strategy, advanced our leadership position. However, if she listens to the leaders of the automotive sector, they say one thing time and again very clearly: we need to conclude a deal with the European Union. They have endorsed comprehensively the deal the Prime Minister has negotiated. If the hon. Lady is concerned for the future of this important sector, she would compromise and recognise the importance of bringing to an end this uncertainty and passing the deal.

[Giles Watling (Clacton) (Con)]

T4. A couple of weeks ago, I attended a business briefing in Tendring where I met some of the wonderful entrepreneurs in my area. They just want certainty. They just want us to get the job done. What is the Department doing to protect those businesses as we leave the European Union?

--- Later in debate ---

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

T3. The Society of Motor Manufacturers and Traders told us in big, bold type in its briefing note this morning that the vehicle excise duty diesel supplement must be removed immediately if we are to encourage the sale of the most advanced and cleanest diesel engines, such as those in which JLR is investing heavily. If that change is needed immediately, can manufacturers be expected to wait until the October Budget for an answer?

[Greg Clark]

The hon. Gentleman knows that I have been in discussion with the industry. The sector has participated in the development of the path to the decarbonisation of vehicles, and it is important that we are consistent with that. However, part of that process is about recognising that buying a diesel car is a perfectly reasonable choice for many people, but some people have got the wrong impression from the announcement.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

T7. The all-party parliamentary group on fair business banking and finance is dealing with several cases, including those of Keith Elliott and Julia Davey, that raise serious questions about inappropriate links between insolvency practitioners and banks, specifically KPMG, PwC and Lloyds Bank. What action is the Minister taking to remove such conflicts of interest?

--- Later in debate ---

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

T8. Can the Secretary of State explain whether he personally thinks the Prime Minister’s exit deal will make the UK better off than remaining in the EU would?

[Greg Clark]

Substantial analysis has shown that, of all the options available, the Prime Minister’s deal is the one that provides the best economic future, and I hope the hon. Lady will support it.

[Maria Caulfield (Lewes) (Con)]

Post offices are at the heart of our communities, so does the Minister welcome the news that Newick post office in my constituency, after being closed for months following the sad death of the postmaster, Terry, is set to reopen? Does she agree that we must do all we can to keep post offices open in our rural communities?

--- Later in debate ---

[Martin Vickers (Cleethorpes) (Con)]

Will the Secretary of State give an update on the next phase of the Greater Grimsby town deal?

[Greg Clark]

I am delighted that the Prime Minister was able to join my hon. Friend, the hon. Member for Great Grimsby (Melanie Onn) and me to celebrate the success of the beginning of that deal. The next phase is about investment in skills, and I look forward to visiting Cleethorpes and Grimsby to inaugurate that important set of investments in the skills of the population.

[Several hon. Members rose—]