Oral Answers to Questions

Greg Clark Excerpts

Tuesday 31st January 2017 Commons Chamber

[Lilian Greenwood (Nottingham South) (Lab)]

1. If he will make it his policy to allocate 3% of GDP on science funding.

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

The first section of our Green Paper on industrial strategy sets out our ambition to make Britain the best nation in the world for scientists, innovators and technical inventors. In support of this, we have announced an increase of £4.7 billion in public research and development funds, which is the biggest increase in support of science for 40 years.

[Lilian Greenwood]

In evidence to the Education Committee last week, Professor Arthur, the president of University College London, spoke not only of the huge sums flowing into UK research from Europe—through Horizon 2020 and the European Research Council, for example—but of the need for a system to replace the mobility of people, networking and the ability to work across multiple boundaries. Does the Secretary of State recognise that if the Eurosceptics in his party prevail and we have a hard Brexit, spending even 3% of GDP on science funding will not be enough to protect our global reputation for scientific research? What is he doing to stand up for the needs of this sector?

[Greg Clark]

The hon. Lady has two eminent universities in her constituency that are going from strength to strength. I agree that it is important that the best researchers from across the world come to our universities, and the Prime Minister said in her Lancaster House speech that that was a priority for our negotiations.

[Mark Pritchard (The Wrekin) (Con)]

Science funding includes funding for the satellite sector, which is an important industrial base for the UK. The Government have set a target to grow this sector by a further 10% of global share in the next two decades. What more money could be put into the satellite sector from the industrial strategy challenge fund?

[Greg Clark]

My hon. Friend raises an important point. We say in the strategy that we should build on our strengths, and the satellite sector is a shining British strength that is creating huge numbers of jobs. It is specified throughout the industrial strategy as an area in which we want the industry to work together to ensure that, in particular, we are training the technicians and engineers of the future, which is what we have been doing.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The industrial strategy rightly points out the crucial significance of investment in science for our future economy and productivity. Given that the USA, Germany and France all outspend us in this area, will the Secretary of State give a commitment that future spending will outstrip theirs to give us a competitive advantage over them?

[Greg Clark]

The hon. Gentleman is a thoughtful Member with regard to these matters, having chaired the then Business, Innovation and Skills Committee, and he will see in the Green Paper that we are candid about the need to maintain the pace. Indeed, we have increased public investment. He was right to mention the US, but actually the proportion of public to business investment is higher in this country than in Germany, Japan, Sweden, Denmark, Finland, Norway and other countries besides. We are building on strength, but we want to take things further, and I look forward to his contribution to the consultation.

[Dr Sarah Wollaston (Totnes) (Con)]

There is great concern about the future of fusion research after Britain pulls out of the EU and Euratom. Will the Secretary of State reassure us that he will continue to support and fully fund the Joint European Torus project and other joint research projects such as ITER—the international thermonuclear experimental reactor—after Britain leaves the EU?

[Greg Clark]

The collaboration between scientists and those in the nuclear sector is one of the important aspects of the continued co-operation that we want and intend to see continue.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

The Green Paper makes much of re-announcing the welcome increase in science spending which, following cuts of up to 50% over the last seven years, has finally returned it to the levels under the last Labour Government. Research and development funding, however, remains barely half the recommended 3% target that Labour has committed to. Does the Secretary of State agree that, given the impact of Brexit on UK science, the lack of any overarching vision and the focus on picking sector winners, rather than mobilising the whole—

[Greg Clark]

The hon. Lady does not have it right. She should know—the science sector has welcomed this fact—that we protected funding for science during all the difficult years in which we were recovering from the financial situation that Labour left us. There was a huge welcome for the £2 billion increase, which is the biggest since 1979. In other words, that is bigger than what any Labour Government ever offered.

[Fiona Bruce (Congleton) (Con)]

2. What recent assessment he has made of the international competitiveness of the UK aerospace.

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[Lucy Powell (Manchester Central) (Lab/Co-op)]

14. What steps he is taking to encourage businesses to support local economic growth.

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

One of our most important reforms has been to devolve power and resources to local areas through city deals, devolution deals and growth deals, in which local businesses can shape the decisions most affecting them. The hon. Lady will have welcomed last week’s announcement that half a billion pounds was devolved to northern local enterprise partnerships, including £130 million to Greater Manchester.

[Lucy Powell]

I welcomed most of the announcements in the industrial strategy last week, but the Secretary of State will appreciate that a local area strategy is required for key infrastructure issues such as skills and childcare. What conversations has he had with colleagues in the Department for Education and across local government about the meaningful devolution of skills, early years and education?

[Greg Clark]

The hon. Lady is absolutely right that the needs of different places should be reflected in decisions that are made locally. Along with the centrality of skills and training, that is a big theme of the industrial strategy consultation, to which I hope she will respond. I look forward to her contribution.

[Mr Alan Mak (Havant) (Con)]

Business investment in science and technology is key to local economic growth and Britain’s leadership of the fourth industrial revolution. Will the Secretary of State continue supporting LEPs to fund these key sectors and technologies?

[Greg Clark]

I will indeed. One of the big opportunities is to make sure that the excellence we have in science and research is married with local strengths so that we can have the products of that research, in manufacturing for example, as well as the discoveries themselves.

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

Northern Ireland has only one very small enterprise zone, which is up in Coleraine and has not really progressed. Can the Secretary of State give any support or assistance to the Northern Ireland Executive, when they are up and running again, for more enterprise zones within the Province?

[Greg Clark]

I have, as the hon. Gentleman would expect, conversations with Simon Hamilton, the Minister responsible in Northern Ireland. My colleagues and I are very happy to consider his suggestions and proposals when we meet him.

[Mr Philip Hollobone (Kettering) (Con)]

I declare an interest as a member of Kettering Borough Council. The borough of Kettering has had one of the fastest rates of business rate growth in the whole country in the last 10 years. Does my right hon. Friend agree that, with local government to be fully funded by business rates from 2020, all local councils will have to get far closer to their local businesses in order for local economies to function as best they can?

[Greg Clark]

My hon. Friend is absolutely right and, as a councillor, he knows how important it is that that very direct connection is made. It is one of the measures going through the House that I was proud to have proposed when I was Secretary of State for Communities and Local Government, and it is something for which local government has long campaigned. I am delighted that it was this Conservative Government who were able to deliver it.

[Bill Esterson (Sefton Central) (Lab)]

Bank lending is essential for local business success, and yesterday’s HBOS convictions are a stark reminder of the way that smaller businesses were treated by some banks during the financial crisis. Does the Secretary of State accept that lending has fallen over the last year? What is he doing to give confidence in the banks, unlock support and increase lending?

[Greg Clark]

The hon. Gentleman is absolutely right to draw attention to the misbehaviour of the banks, especially with regard to small businesses, when they were inadequately supervised as a result of the destruction of the supervisory regime under the previous Labour Government. That has now been put on a much sounder footing. He will know that the lending opportunities for small businesses have been transformed, but the industrial strategy Green Paper is very clear that we want to make further opportunities available, particularly outside London and the south-east.

[Martin Vickers (Cleethorpes) (Con)]

15. What assessment he has made of the effect of the offshore energy sector on the Humber region.

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[David Morris (Morecambe and Lunesdale) (Con)]

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

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

Since our last questions, with the Prime Minister my ministerial team and I have launched our industrial strategy Green Paper, part of a cross-Government plan to build an economy that works for everyone. Efforts to secure global investment in British enterprise and innovation continue to meet with success, with the most recent example being the £115 million Novo Nordisk investment in Oxford, which is a further vote of confidence in Britain as a place to do both business and science. Today we launch the next energy capacity market auction. Last month, I signed a memorandum of co-operation with the Government of Japan on civil nuclear activities, and on Thursday I announced that we have secured a second mission to space for Major Tim Peake.

[David Morris]

As always, my right hon. Friend has been extraordinarily busy, but may I ask my extraordinarily busy right hon. Friend to turn his attention to Morecambe and Lunesdale, as we now have a new link road going straight to the Heysham port and we would like an enterprise zone? Will he help me to get an enterprise zone?

[Greg Clark]

I am never too busy for Morecambe and Lunesdale, and I know what a passionate campaigner my hon. Friend has been for the business prospects in his area. If I may, I will talk to the Minister responsible for the northern powerhouse, who has responsibility for enterprise zones—I am sure he will be happy to have a meeting with my hon. Friend.

[Clive Lewis (Norwich South) (Lab)]

The Secretary of State’s plan to impose arbitrary cuts on the pensions of 16,000 nuclear energy workers, 7,000 of them in Copeland, threatens industrial relations in a key sector. I urge him to take the opportunity, at this week’s meeting with trade unions, to end his attack on workers who power our country and abandon the raid on their pensions before the industry is plunged into chaos.

[Tom Pursglove (Corby) (Con)]

T4. What discussions has my right hon. Friend the Secretary of State had with representatives of industry, particularly the steel industry, about the UK’s leaving the European Union?

[Greg Clark]

As my hon. Friend would expect, my colleagues meet representatives of all kinds of businesses, both in the UK and those looking to invest here. We are clear, as the Prime Minister has been, that we intend to pursue our negotiations to secure the best possible access to the single market so that the manifest advantages of the UK continue to be available to companies, here, now and in future.

[Christina Rees (Neath) (Lab/Co-op)]

T2. European Commission state aid approval for the steel industry is still not in place. Will the Secretary of State guarantee that compensation under the energy industrial package will be provided by the UK Government until the exemption is finally introduced?

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[Nicky Morgan (Loughborough) (Con)]

T7. The Government’s recent industrial strategy Green Paper is to be warmly welcomed. I have spoken to the vice-chancellor of Loughborough University, and we see lots of opportunities for the Loughborough constituency, the university, the college and local industry. My right hon. Friend the Secretary of State has visited Loughborough; perhaps I can tempt him to come again to hear about those opportunities, or could we meet in London?

[Greg Clark]

I commend Loughborough University and its vice-chancellor, Robert Allison. It is a fantastic example of an excellent academic institution that makes a big impact locally. I am always happy to meet my right hon. Friend and the leadership of that fine university.

[Richard Arkless (Dumfries and Galloway) (SNP)]

T3. The removal of the renewables obligation and the decimation of the feed-in tariff have had a huge negative impact on my constituency, where renewables are the one tangible business area we have that we can grow and that offers highly paid jobs. One year on from those draconian measures, what reassessment has been made of the policy’s effectiveness?

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

T8. May I again welcome the first two pillars of the proposed industrial strategy: investment in science and developing skills? Will my right hon. Friend the Secretary of State meet me to discuss how the work of the Science and Technology Committee can act as a road map in delivering the Government’s aims?

[Greg Clark]

I very much hope that my hon. Friend’s Committee will engage with the consultation. If we are to have a strategy that endures, it is important that it takes into account the views of all those on both sides of the House with an interest in securing our economic prosperity and future scientific excellence.

[Kerry McCarthy (Bristol East) (Lab)]

T5. It is estimated that an ambitious approach to the circular economy could create half a million new jobs. Cities such as Bristol would be very well placed to take advantage of that. It is disappointing that there is little mention of resource efficiency, low-carbon growth and sustainability in the industrial strategy. Can the Government reassure me that they are taking this seriously?

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[Kelvin Hopkins (Luton North) (Lab)]

T6. Since the EU referendum, the depreciation of sterling has boosted British manufacturing and exports, but, as we are leaving the EU, will the Government now start to use public procurement and necessary state aid to support the vital expansion of our industries and the promotion of import substitution?

[Greg Clark]

We want British business and British industry to compete on the basis that they are price-competitive. There are opportunities that come from being outside some of the bureaucracy, which affects small businesses in particular when it comes to public procurement, and those are opportunities that we will be able to take.

[Mr Speaker]

I call Mr David Nuttall. I thought that he was interested in this question. Has his appetite diminished? [Interruption.] No? Go on. Get in there, man.

[Mr David Nuttall (Bury North) (Con)]

I had not planned to stand for topical questions, but may I urge my right hon. Friend not to be swayed by the arguments from the Opposition to spend a specific amount of our GDP on research for scientific projects? If the private sector is unwilling to fund those projects, we should ask serious questions about whether the public sector and my hardworking taxpayers should be asked to foot the bill.

[Greg Clark]

Happily, the private sector—British business —is an enthusiastic and increasing supporter of investment in science and research. Sometimes that is done jointly with important publicly funded institutions such as our universities, and that is one of our strengths as an economy.

[Mr Iain Wright (Hartlepool) (Lab)]

In November, the Secretary of State hauled energy companies into his Department to put pressure on them regarding claims that they were generating excess profits. This morning, at the Select Committee, Which? told us that energy companies are dismal when it comes to customer service and prices. Does he agree with that assessment, and will he outline to the House what progress has been made to get a better deal for energy customers since that meeting in November?

[Greg Clark]

Yes. The hon. Gentleman raises an important point. The Competition and Markets Authority report identified a huge detriment that consumers were facing. There has been some limited response from the energy companies. For example, they have deleted some of their more abusive tariffs, but there is further to go, and we will be making a response to the CMA report in the days ahead.

[Amanda Solloway (Derby North) (Con)]

It has been recently announced that the strategy for the midlands engine for growth will be announced soon. The midlands engine is vital for business in Derby and the midlands, so may I urge the Secretary of State to consider it sooner rather than later?

[Greg Clark]

The midlands engine is a very important part of the strengthening of the economy, and there is real momentum there. My hon. Friend can look forward to some very important announcements that will be made imminently.

[Greg Mulholland (Leeds North West) (LD)]

Last week, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Stourbridge (Margot James), said that there had clearly been instances of the pubs code being flouted and that Members should bring such things to her attention. I have a case in her own constituency to bring to her attention, which also shows that the adjudicator is not doing his job. May we discuss this matter please?

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

The industrial strategy makes a clear commitment that future rounds of infrastructure investment will take into account the balance of spending per head as between different regions. On the basis that there is a 60% imbalance between London and the rest of the country at the moment, what balance would the Secretary of State like to see going ahead?

[Greg Clark]

I thank my hon. Friend for his contribution to the consultation. We are very clear that we need to see infrastructure investment in all parts of the country. It is one reason why we have created institutions such as Transport for the North to be able to take those decisions locally.

[Stephen Kinnock (Aberavon) (Lab)]

The Government’s industrial strategy has sector deals for a number of sectors, which is welcome. Given the vital cross-cutting foundational nature of the steel industry, will the Minister now commit to a sector deal for steel?

[Greg Clark]

I can tell the hon. Gentleman that I have already been having discussions with the steel industry with precisely that purpose in mind.

[Several hon. Members rose—]