Oral Answers to Questions

Greg Clark Excerpts

Tuesday 21st January 2020 Commons Chamber

[Chris Skidmore]

Last year, during a fantastic trip to the Belfast region, I had an opportunity to meet representatives of Thales Alenia Space, which is working on some of the capsules that encase satellite technology. The hon. Gentleman was absolutely right to ask that question. Our national space strategy constitutes a one nation approach that will involve every part of the UK, from a horizontal launch site down in Newquay in Cornwall to a vertical launch site up in Sutherland in Scotland—we are also thinking about establishing a spaceport in Wales. Every part of the UK will be involved in space, and rightly so.

[Greg Clark (Tunbridge Wells) (Con)]

We have a growing share of one of the fastest-growing markets in the world—the market for satellites—but no country in Europe has the ability to launch satellites into space, and there is a race to be the first to do so. Will my hon. Friend update the House on when we expect the Sutherland site to be ready for the launch of the first UK satellite?

[Chris Skidmore]

I pay tribute to my right hon. Friend for his hard work on space when he was Business Secretary. He was responsible for working on the Satellite Applications Catapult increase, and for the £99 million satellite testing facility at Harwell, which will mean that satellites can be tested here rather than our having to go abroad. He also set out our mission to be the first country in Europe to have both horizontal and vertical launch. As for Sutherland, I am working closely with the highlands and islands authorities to ensure that we can achieve our vertical launch, and that we work with Lockheed and other partners to do so as soon as possible.

Oral Answers to Questions

Greg Clark Excerpts

Tuesday 22nd October 2019 Commons Chamber

[Kelly Tolhurst]

I thank the hon. Lady for her question and I am more than happy to meet her to discuss her constituency in further detail if she would require. There is no programme of closures and the Post Office is working extremely hard, where post offices do shut for any, sometimes unpredictable, reason, to find replacements. We do have outreach services that are available when there is a lack of service, but I am happy to speak with her further about that.

[Greg Clark (Tunbridge Wells) (Ind)]

I welcome the Secretary of State to the Dispatch Box and hope that she will have distinguished tenure at this important time. She will know that the recommendations of the independent review of the Financial Reporting Council, conducted by Sir John Kingman, were widely endorsed and are urgently required. I was concerned that the statutory implementation of those recommendations was not included in the Queen’s Speech. Can she assure me that she is not going to miss a golden opportunity to make these reforms and give a big boost to our standing in the world?

[Andrea Leadsom]

First, let me pay tribute to my right hon. Friend, my predecessor, who did a fantastic job in this Department. I am delighted to stand by the position that he took as Secretary of State: it is the Government’s plan to legislate for a new regulator with stronger powers, replacing the FRC, as soon as parliamentary time allows. We are planning to progress this work in the first quarter of next year, once we have received Sir Donald Brydon’s review of the quality and effectiveness of audit.

British Steel

Greg Clark Excerpts

Wednesday 24th July 2019 Commons Chamber

[Anna Turley (Redcar) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the sale of British Steel.

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

As hon. Members will recall, I made a statement to the House a few hours after British Steel entered insolvency on 22 May. This was, and still is, an uncertain time for the British Steel workforce, their families and their communities, for the customers and suppliers of the business and for everyone who believes, as I do, in the importance of excellent steelmaking and manufacturing in the UK.

In my statement, I said that, although the independent official receiver is solely responsible for the operation and sale of the British Steel business, I would, both personally and on behalf of the Government, do everything that I possibly could within my powers to help secure a good future for the whole of British Steel’s operations.

Following a visit to the Scunthorpe plant the following day and to Skinningrove and Lackenby on Teesside the day after with local MPs, including the hon. Member for Redcar (Anna Turley), we formed a British Steel support group to work together immediately and actively to pursue that aim. I chaired the group with the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Pendle (Andrew Stephenson), which has included British Steel management; trade unions Community, Unite and the GMB; the Mayor of the Tees Valley and the leader of North Lincolnshire Council and their officers; the chairs of the Humber, Greater Lincolnshire and Tees Valley local enterprise partnerships; UK Steel; Make UK, the manufacturers’ organisation, on behalf of suppliers and customers; the Federation of Small Businesses; Government officials and other local MPs, including the hon. Lady, my hon. Friends the Members for Middlesbrough South and East Cleveland (Mr Clarke) and for Brigg and Goole (Andrew Percy), and the hon. Member for Scunthorpe (Nic Dakin). The support group has now met eight times, usually in Doncaster, and sub-groups on the supply chain have met separately, as have local partners.

I wish to pay tribute to the hard work, tenacity and dedication of this group and the extraordinary commitment of the workforce who, during this time, have worked magnificently, not only to continue but to increase steel production.

Often in insolvencies, customer orders dry up, suppliers withdraw their services and the workforce drifts away, precipitating a rapid failure. In this instance, the opposite has been the case. The confidence that the support group has built, coupled with a Government indemnity to the official receiver, has allowed trading to continue, orders to be won and production to increase. This is without precedent in my experience.

Although all decisions are for the official receiver, I have been active, as Members know, in visiting prospective buyers in many parts of the world to make it clear that the UK Government will, within our legal powers, work with a good long-term owner of these important assets to see how we can help them to realise their vision for the company.

I am pleased to say that the official receiver has said that he is encouraged by the interest in purchasing British Steel and his special managers, EY, are currently in further discussions with potential buyers. The official receiver has made it clear that, given the complex nature of the operations, any potential sale will take time to deliver.

I said in May that I was determined to see the proud record of steelmaking excellence continue. The world needs steel, and British Steel is among the best in the world. To secure that will require, in my experience, the continued active participation of everyone that I mentioned earlier without interruption during the critical weeks ahead. In particular, whoever stands at this Dispatch Box will need to devote themselves unstintingly to achieve a great outcome for everyone concerned with British Steel, which I believe, although not certain, is certainly within grasp, and that is the flourishing of British Steel’s operations for many years to come.

[Anna Turley]

Let me begin by putting on record my thanks to the Secretary of State—not only for his response just now, but for the way in which he has responded to this crisis. We find ourselves in a fundamentally different position from the situation in 2015, where, either by design or flat-footedness, the Government failed to respond, with devastating consequences. This is a completely different scenario, and I am grateful to the Secretary of State for stepping in and helping to secure the asset, enabling the business to continue and ensuring that the workforce were paid. Through the indemnity that the Government have given to the official receiver, the Secretary of State has given us a very good chance of ensuring the future for British Steel in this country. I also thank him for his efforts in going around the world to help secure a buyer.

Of course, the situation remain precarious. In the past few weeks, we have seen the new Prime Minister running around the country waving kippers in the air; by contrast, 5,000 dedicated, highly-skilled workers in British Steel have been putting their shoulders to the wheel in Scunthorpe, Skinningrove and Lackenby, despite their livelihoods being in the balance. They have been producing at record levels and working with every effort they have to ensure that the business continues to produce the best steel in the world and to flourish. I pay tribute to all those working within British Steel. They deserve a Government who will be straining every single sinew to ensure that the business survives.

I pay tribute to the trade unions, including Community and Unite; every worker in British Steel; everybody in the customer base who has continued to ensure that requests for steel have come through, including some who have even stepped up their demands; everyone in the supply chain who has continued to work so hard to supply the business; and colleagues in the Doncaster round- table. I again pay tribute to the Secretary of State for the inclusive and positive way in which he has responded. However, I do have a number of questions for the Secretary of State—for whoever will be at the Dispatch Box in the coming days, weeks and months ahead.

First, does the incoming Secretary of State understand the implications of failure? We know what 5,000 job losses could be like in areas such as Scunthorpe, Redcar and Skinningrove where there is no alternative employment, and we know the cost of cleaning up the site: £1 billion. Does the future Secretary of State understand the loss of a major industry in Britain that any self-respecting major economy would value and recognise to be essential? Will they recognise the role of steel as a foundation industry for our defence, automotive and construction sectors and what reliance on overseas production could mean for our economy, our independence and our self-reliance?

Secondly, will the future Secretary of State endeavour to ensure that the official receiver continues to receive the indemnity for as long as it takes to find a buyer? Thirdly, will they endeavour to give wholehearted Government support to the bids that primarily keep the business together as one industry across Skinningrove, Lackenby and Scunthorpe? Will they pledge to prevent cherry-picking, to keep asset strippers at bay so that we do not suffer the same issues that we have experienced before and to ensure that the terms and conditions of the workforce are maintained? Will they ensure that any company that the Government support will invest in the assets and ensure that they are modernised for the future of our industry? Will they invest in research and development and be committed to the long-term interests of steelmaking in this country?

Finally, I hope that whoever will be at the Dispatch Box in the weeks ahead will recognise that they have the jobs and livelihoods of thousands of men and women in their hands, as well as the guardianship of a vital, modern, innovative and potentially world-leading British industry.

[Greg Clark]

I am grateful to the hon. Lady for asking the question that has given us the chance to talk about these issues. She has been dedicated and devoted to her constituents, as have other Members—starting the week with me in Doncaster with the colleagues I described to ensure that we can work together and join together to ensure that there are no gaps between any of the interested parties. That has had an appreciable effect, as has been noted by many prospective buyers. Certainly, many customers and suppliers have also observed the resolution and the unanimity of resolution behind this.

Many of the hon. Lady’s questions were addressed to whoever might be the Secretary of State under the new Prime Minister, so it would be presumptuous of me to answer on his or her behalf, but she has placed a clear set of requirements on the record and I endorse everything she said. Not only would the consequences of the loss of historical assets—hugely important in all the communities she mentions—be unconscionable; there would also be the loss of a substantial opportunity.

The hon. Lady, like me, believes that there is a strong strategic future for the British steel industry. As I said in my previous answer, the world is going to need steel. Through investing in infrastructure, this country has opportunities to make greater use of UK steel. We export much in the way of our scrap steel to other countries. That could be made better use of, both environmentally and in terms of industrial opportunities. If we invest—as we intend to and are doing through the industrial strategy—in the technologies that will make steelmaking cleaner, more efficient and suitable for new uses, there is every reason to think that the UK steel industry, including British Steel, can be a beacon showing the rest of the world how a modern manufacturing industry can flourish.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

May I associate myself with the priorities outlined by my constituency neighbour, the hon. Member for Redcar (Anna Turley)? This is an opportunity to say a big thank you on behalf of the people of Teesside for all the dedication that the Secretary of State—a son of Teesside—has shown to our steel industry. It has not gone unnoticed locally how much he has gone over and above what might be called the ordinary line of duty to secure a positive outcome to this sale, so I pass on a sincere and lasting thank you.

It would be helpful to get on record what the Secretary of State has been doing to leave no stone unturned in these negotiations. In particular, will he talk about the in-principle willingness potentially to invest alongside a future purchaser?

[Greg Clark]

I am grateful for my hon. Friend’s generous words. He has been assiduous not just in being a member of the support group, but by working in Skinningrove with the customers of British Steel to convey the assurances that are necessary. Buyers will have questions about this extensive and complex set of assets, so it is important—and will continue to be important, especially during the weeks ahead in August—that everyone is available and active in providing the answers to those questions.

Through the industrial strategy, the Government have established programmes to support improvement in energy efficiency, which is very important; to decarbonise industrial clusters, of which steelmaking is a prime example; and to invest in research and development. Through the industrial strategy, we have the biggest increase in R&D in the history of this country. I am making these points to prospective purchasers so that they can see that the environment is a positive one.

It would be wrong for me to comment on the individual bids, as that is legally and strictly a matter for the official receiver, but I have made myself available in this country and overseas to answer questions. I think that I have had more than 25 meetings with bidders, and it has been encouraging—to use the words of the official receiver—that serious bids have been made, but the work must continue to land them and to secure the future.

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

I do hope that this is not my last exchange with the Secretary of State, but just in case it is, I want to stress my thanks for the amazing Mini Cooper toy that he presented me with last week and to say that he should not worry because there will always be a parking space in my heart for him. We might differ in our approach to many of the structural flaws that our economy faces, but we actually have more in common on most issues than many people would realise, not least on industrial strategy. I also thank my hon. Friend the Member for Redcar (Anna Turley) for securing this important update on British Steel.

The Secretary of State shares my opinion that British Steel must be kept as one entity, not splintered off to different buyers who do not have the long-term success of the company at heart. However, there have been reports this week that the Chinese Jingye Group, which was interested in the company as a whole, has pulled out. It was also reported that the deadline for bids has been moved a number of times. Indeed, an email sent from the official receiver is reported to have stated that no deadline has been set to conclude a sale process. Can the Secretary of State confirm how many prospective buyers remain, how many are interested in acquiring the entire the company and what deadlines for the sale have been set? Will he also confirm, as my hon. Friend mentioned earlier, that he will only give his support to bids that support the long-term interests of the company, the workforce, the local community and the steel industry as a whole?

The Secretary of State must recognise that, as Labour has repeatedly stated, action must be taken on electricity prices, business rates, driving investment and, of course, securing a good Brexit deal, because no deal could mean no steel. Will he therefore assure the House that he will be taking steps to ensure that the new Prime Minister urgently takes action on these issues and understands the real importance of the steel industry?

[Greg Clark]

I am very grateful to the hon. Lady for the generosity of her remarks. I have enjoyed my exchanges and meetings with her. I hope the parking space in her heart has a charging point for the electric Mini—that would be very important.

The hon. Lady invites me to comment on the bids and some of the press speculation as to who is bidding and who is not. First, this is a matter for the official receiver, and secondly, I would not want to prejudice any of the bids by commenting. The discussions, in many cases, take place under confidential terms, and it would be wrong to do anything that might disadvantage that. There is often, in situations like this, speculation in the press, and much of it is misplaced. What I can say—the official receiver has said this publicly—is that several bids have been made and he is looking for bids that consider the whole of the operation. I welcome that, as the hon. Lady does.

On long-term commitments, we do have a long-term commitment to manufacturing, and to steel in particular. I mentioned some of the funds that are available in the industrial strategy. Of course, because they would accompany substantial investments, which I hope will be in place, they require a long-term commitment from any prospective buyer.

The hon. Lady is right to raise the question of energy prices and electricity prices. This is not a new phenomenon, and it is not unique to any particular Government. In fact, the biggest increase in industrial electricity prices took place under the previous Government. In the past five years, we have contributed nearly £300 million to energy-intensive industries as a rebate towards those costs. Through the industrial energy efficiency fund that is available in the industrial strategy, we want to reduce further the costs of energy. It is very important that we should do that.

The hon. Lady asks questions about the incoming Prime Minister. I spoke to both candidates during the leadership contest to impress on them what she and I agree is the crucial role of this industry. I know that she, the Under-Secretary—my hon. Friend the Member for Pendle (Andrew Stephenson)—and other hon. Members have communicated not just with the current Prime Minister but with her potential successors to reinforce the resolution across all parts of the House that this is at the top of the new Prime Minister’s agenda.

[Sir Edward Leigh (Gainsborough) (Con)]

A very large number of my constituents work at Scunthorpe. Can the Secretary of State assure me that whatever happens, their welfare is at the forefront of his mind? In an international market that is often manipulated by Governments, notably the Chinese, will he assure me that in this case, to quote Sir Keith Joseph, the market is not enough, and there will be an activist and extremely interventionist approach by the Government to ensure that there is a buyer? Lastly, I have always thought that my right hon. Friend was an outstanding parliamentarian ever since our days on the Public Accounts Committee together, and I wish him well in the reshuffle.

[Greg Clark]

I am very grateful to my right hon. Friend. My training under his expert tutelage on the PAC stood me in good stead for ministerial office, and I am grateful to him for that.

I am encouraged by my right hon. Friend’s encouragement to take an activist approach. That is the approach that I have been taking. In my view—and this applies to everyone who has been part of the support group—we let this slip through our fingers if we are not there to make sure that all the questions can be answered, whether through the trade unions, which have been magnificent in this, or through the local authorities, including some of his neighbours in Lincolnshire. Ursula Lidbetter, who leads the Lincolnshire local enterprise partnership, has been very active in the group. I will, in so far as I am still at this Dispatch Box, continue that approach. I am sure that my right hon. Friend’s recommendation of an activist approach will sound with some resonance down the corridors of this place and reach the ears of the new Prime Minister, who I hope will follow his sage advice.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

It is disheartening to hear that this process continues to drag on with no idea how long it will take for a deal to conclude. This UK Government must at last stand up for the steel industry and deliver a sector deal. In today’s global world, the uncertainty caused by Brexit is providing businesses with the nudge they need to leave the UK. How many more will leave when it becomes apparent that the new Prime Minister has no plans beyond a no-deal Brexit? Our thoughts are with all those dealing with continued uncertainty—employees, management, unions, and those in the supply chain. What will the Secretary of State, who has shown real commitment to securing the continuation of the British steel plants, do—or, indeed, what will his successor do—in the face of a Brexit that is doing irreparable damage to our manufacturing sector?

[Greg Clark]

I am grateful for what the hon. Lady said about me personally.

I think it would be more disheartening if this process had concluded, as was the wide expectation eight weeks ago, with what happened in Redcar, as the Redcar mentioned, which was the more or less immediate closure of the plant. The fact that the process continues, far from being disheartening, is heartening in that there are several bidders that the official receiver and his agents are working with. It is absolutely vital that those discussions should continue for as long as they prove necessary. That is one of the reasons why my first act on the warning of the insolvency was to commit a Government indemnity to allow an orderly process to take place, and I very much hope it will.

I very much agree with the hon. Lady that having a sector deal with the steel sector is highly desirable. All the sector deals—colleagues have heard me launch different sector deals from this Dispatch Box—require investment by the industry and by the Government alongside each other. That is precisely what we want to do in this case. I hope that this will be a catalyst for the investment that allows such a deal to take place.

[Andrew Percy (Brigg and Goole) (Con)]

I, too, thank the Secretary of State for his work on behalf of the very large number of my constituents who work at Scunthorpe. It is because of his actions, and the actions of our Government, that they have continued to be paid throughout this process and that they continue to have the confidence to commit to the British Steel site at Scunthorpe. Moving forward, does he agree that it is really important that the incoming new Government commit once again to big infrastructure projects such as High Speed 2 and, of course, Northern Powerhouse Rail—HS3—to give the industry the certainty into the future that there is going to be investment from this Government in such vital infrastructure?

[Greg Clark]

I am grateful to my hon. Friend for his participation in the support group in support of his constituents, which has been very valuable. As I made clear, this is for the official receiver, and I do not want to get ahead of his progress. The situation is still not resolved. He has said that it is encouraging, but we need to work very carefully to ensure that it is resolved satisfactorily. In terms of audit, one of the striking things he has found, as my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) and the hon. Member for Redcar (Anna Turley) will know, is how loyal customers of British Steel have been, in many cases confirming orders well into the future. Network Rail is one such customer, for two reasons—partly for steel reasons but partly because I believe that we should have big upgrades in our national infrastructure. I very much endorse what my hon. Friend said.

[Rachel Reeves (Leeds West) (Lab)]

I very much welcome the activist approach that the Secretary of State has taken with regard to British Steel. I also welcome the fact that no deadline has been imposed, because the most important thing is that this time we find a buyer who is going to support British Steel, invest in it and see it through to the future, unlike the previous owner. Will he give an assurance that the Government will stand by British Steel until a new buyer is found? He knows full well that if a steelworks is closed, it is incredibly hard to reopen it. I urge him to look again at a sector deal for the steel sector, which is so important for the whole industry’s future. Our Select Committee, the Business, Energy and Industrial Strategy Committee, will be looking specifically at British Steel, but also at the wider steel industry, in our inquiry in September. We will be looking both at the actions that this Secretary of State has taken, which we welcome, and at those of his successor.

[Greg Clark]

I am grateful to the hon. Lady, the Chair of the Select Committee, and I welcome the prospect of that inquiry. There is a lot to examine, and she will approach it with her usual forensic attention to detail. I very much hope that the new Prime Minister will continue the commitment that the current Prime Minister was willing to give and the authority that she has given me to act in the way that I have. She and others will hold to account the new Prime Minister and his team on that.

The hon. Lady is right; there is something special about steel assets in many respects, but one is that if they are closed down, it is very hard for them to spring back into life, so continuity is of great importance. That is one of the achievements that, together, we have been able to bring about over recent weeks.

No one is keener than I am to conclude a sector deal. It requires investment. There is an opportunity for the British steel industry to be more strategic than it has been and, as some other sectors have done, align itself to some of the products that we know will be in demand in the future, backed by research and development. That is the approach that the industrial strategy takes, and it applies in spades to steel, so I hope there will be a sector deal to reflect that.

[Trudy Harrison (Copeland) (Con)]

I am pleased to hear my right hon. Friend acknowledge the world’s dependence on steel and the value that he places on British Steel. Does he also recognise that, without coking coal, there would be no steel industry? The privately funded, multimillion-pound Woodhouse colliery being developed by West Cumbria Mining in my constituency is of vital importance and will have economic, social and environmental benefits for our area and, indeed, the country. Will he do all he can to help move that project forward?

[Greg Clark]

As my hon. Friend says, much steel production requires coking coal, so it needs to be provided. I understand that there was broad cross-party support for the operation that she describes. One of the imperatives is to move steelmaking to be cleaner and greener in its energy efficiency and use of other fuels. That feature of the industrial strategy programme applies very much to the steel industry.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

I echo the comments of my hon. Friend the Member for Redcar (Anna Turley) in thanking the Secretary of State for his approach to the industry in general and this issue in particular. He has reminded us today and on previous occasions that we cannot just turn on and off a steelworks like a tap. If it is allowed to go cold, it is very expensive and difficult to set up again. The indemnity has been the key thing in enabling operations to continue while a buyer is found. What assurance can he give the House that that indemnity will continue for as long as it takes to finish the process of finding a buyer?

[Greg Clark]

I am grateful to the right hon. Gentleman; he knows about the manufacturing industry, and he is right in his description of it. I have to report that my request for the indemnity was granted readily; I think the lessons of the Redcar closure have been learned. I have no reason to suppose that the incoming Prime Minister will take a different view—in fact, quite the reverse. I have met him and his competitor, and during the days ahead I hope and expect that that support will continue to be available. But I should be clear with the House: British Steel is in the hands of the official receiver. Neither I nor any other Minister determines its future, so it will be important to conclude a sale to a long-term investor in it. That is not in the bag yet, but I think it is evident that everyone is doing everything they can to secure it.

[Mrs Kemi Badenoch (Saffron Walden) (Con)]

I was pleased to hear from the Secretary of State that he has been working tirelessly with British Steel and the official receiver to find a new buyer for the company. Can he tell the House what further plans the Government have to support companies in the supply chain, such as those in my constituency, over the coming days and weeks?

[Greg Clark]

I am grateful to my hon. Friend, because she gives me the opportunity to pay tribute to Stephen Phipson, the director general of Make UK, the manufacturers’ organisation. He serves on the support group and has been present at the meetings, and he has convened a panel of suppliers and customers, to ensure that some of the uncertainty and challenges that they have faced during the insolvency of British Steel have been dealt with. Working with HMRC, the British Business Bank and the official receiver, the panel has had—as I think colleagues on the support group would accept—a positive role in providing help and reassurance to the supply chain across the country.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

The Secretary of State has acknowledged that the closure of a major steelworks is an intergenerational blight, as we have seen with the closure of Redcar and of Ravenscraig, which is still a wasteland 30 years on. It is therefore critical that we maintain long-term planning in the sector. That is aided by patient finance. Access to patient finance in this country is very poor compared with some of our peer nations, notably Germany. What will he do to improve patient finance access for the huge capital investment needed in the steel industry, in order to improve the attractiveness of British Steel to potential investors?

[Greg Clark]

The hon. Gentleman makes an excellent point. Improving the access to and availability of patient capital in this country is a focus through the industrial strategy and some of the work that the Treasury is doing, but there is more work to be done. He is right—a long-term owner of British Steel needs to have the patience required in an industry that is, and always has been, subject to the ups and downs of the economic cycle and sometimes conditions in international trade. It is often not the most stable of industries, and as I think he would agree, any owner needs to be resilient to that.

[Jeremy Lefroy (Stafford) (Con)]

British-manufactured steel is vital for exporting companies in my constituency, such as General Electric, and across the country and therefore makes a huge contribution to our balance of payments. What is being done to support the export of British steel both directly and through other manufactured goods? Will my right hon. Friend comment on what my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) said about the possibility of the UK Government being a co-investor, alongside others, to ensure that British Steel continues to serve this nation so well?

[Greg Clark]

On the first point, there are great opportunities for exports. The support group has been working with the Construction Products Association, for example, to improve the marketing of British Steel products in this country and to overseas markets. Support is available through UK Export Finance for British exporters in all sectors. When it comes to the requirements of any bidder, strict rules pertain to British Steel, which is one reason why it requires an understanding of the investment plans of prospective bidders. That is something I have been doing, and I hope it will continue in the new Government.

[Nick Smith (Blaenau Gwent) (Lab)]

As the son of a steelworker, may I join the Secretary of State in praising the workforce and the trade unions at British Steel? I want to press him: will the Government ensure that the terms and conditions of the workforce are kept high through this difficult time, until a new buyer emerges?

[Greg Clark]

The terms and conditions have continued. The special managers, on behalf of the official receiver, have worked closely with the trade unions. Through the support group, we have no complaints and no reason to think that anything in those terms and conditions has been impaired during the insolvency. Of course, when a company is in insolvency, it is in the hands of the official receiver, but the special managers have shown themselves to be understanding and accommodating of the requirements of the workforce. It is a reflection of the workforce that they have committed themselves to the company and increased production at a time of uncertainty. That is a real tribute to their professionalism and the faith they have in the quality of their product.

[Caroline Flint (Don Valley) (Lab)]

I know from friends and colleagues in the trade unions, particularly Community, that they are thankful for the positive approach the Secretary of State has taken to his dealings with this. I am glad that Doncaster is providing the venue for talks, and everybody who is a party to them is welcome to come to my house for beer and sandwiches—or whatever they fancy—if it helps the talks in any way.

The Secretary of State has mentioned securing a steel sector deal a couple of times, and he alluded to one of the issues that the industry should think about. Does he still believe that getting those talks under way again at the earliest possible opportunity is crucial, and what other main headline issues need to be sorted, discussed or broached to get those talks up and running at the earliest opportunity?

[Greg Clark]

I am grateful to the right hon. Lady, and it has been good to meet in Doncaster. It may seem a surprising place to meet, but it is quite convenient for both Scunthorpe and Teesside, as well as London, so that is where we start our week. The invitation to go to the right hon. Lady’s house is a very inviting one, which I am sure the support group will want to take up.

On the sector deal, we have made good progress, but all sector deals are about investment. It has been a feature of the steel industry in recent years that the investment in the future has not been at the level of some other industries where we have concluded deals—life sciences, automotive, aerospace and others. It is not in any sense that the talks have broken down; it requires investments to be made. I hope that, if there is to be a successful resolution for British Steel, that might provide the ability to do precisely that.

[Mike Wood (Dudley South) (Con)]

Does my right hon. Friend agree that what the steel industry, including in the Black Country, needs above all else is a long-term strategy, with a pipeline of projects that can create good opportunities for those who work in the sector?

[Greg Clark]

My hon. Friend is right, and he is right, as his neighbour the right hon. Member for Wolverhampton South East (Mr McFadden) did, to call attention to the role of the Black Country. They have a phrase in the Black Country, “Made in the Black Country, sold around the world”, and that is a proud and accurate boast. However, there are opportunities in the UK for those products, and the Government have published a forward pipeline of infrastructure investments that require steel so that companies can gear themselves up to participate in procurement.

That is very important, and I would like to pay tribute to the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Pendle (Andrew Stephenson), who has responsibility for industry. He has signed the steel charter and is promoting it across all public bodies. Again, it requires and encourages the use of British steel to be taken into account in all procurement decisions.

[Stephanie Peacock (Barnsley East) (Lab)]

Following on from the Secretary of State’s answer, he may recall the Defence Secretary saying that

“we can and must buy British.”

Does he agree that one way to do this would be to back a British bid to build the Navy’s new support ships, which could create 16,000 jobs throughout the supply chain in Barnsley and across the country?

[Greg Clark]

The hon. Lady makes a good point. We have published figures for each Department on their use of British steel. It is the case, and the House should be aware of this, that not all types of steel used are actually made in the UK. At least at the moment, it is not possible to supply all of our steel needs from domestic supplies; that is the reality. She mentioned the MOD, and my hon. Friend the Under-Secretary of State is working closely with the Ministry of Defence so that its support for the steel charter results in increasing levels of procurement of British steel.

[Chuka Umunna (Streatham) (LD)]

We can be incredibly proud of our steel industry. It is of course a primary example of where industrial activism generally, on the part of the Government, is absolutely vital. If we see any form of Brexit, which the Secretary of State knows I oppose, it will of course be even more important that we have industrial activism. I am in no way agitating for his removal, but will he assure this House that if he is replaced in post in the next 24 hours, he will urge any successor not to turn their back on implementing a proper industrial strategy? Now is certainly not the time for a return to the Thatcherite economics that, frankly, saw the destruction of so many great industries in this country.

[Greg Clark]

I am grateful to the hon. Gentleman for what he has said. He and other hon. Members will know that the approach we took to developing the industrial strategy was to seek, I think successfully, to engage all parts of the country, all parts of the economy, and different firms, business leaders, local leaders and trade unions, to have something that reflects, as far as possible, a shared view of what our priorities should be in the future—whether that is investing in infrastructure, investing in skills, increasing the research and development investments that we make in this country, and identifying opportunities, such as in the future of mobility or the analysis of data, that are great sources of global opportunity for Britain. We did it in that way because I think it is right for an industrial strategy to endure—a short-term strategy is a contradiction in terms. I hope the consensual way in which it has been put together and the content of it will commend the industrial strategy to the incoming Government. It is obvious from what the hon. Gentleman has said that he will play a role from his seat in ensuring that those in government do that.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

As chair of the all-party manufacturing group of MPs, may I remind the Secretary of State, whom I have a lot of time for, that it is essential we have steel in this country? I represent Huddersfield, which is a major engineering community, and the community is at the heart of this. Manufacturing, steel and engineering all hang closely together. Will he take a long-term view, but will he also make sure that we do not sell at the weakest time in the market? If the steel industry needed a period of public ownership, what would be wrong with that? This pragmatic Government have done it with London North Eastern Railway, so why not with steel? May I urge him to be totally pragmatic, not ideological, and to make sure that we have a steel industry that is successful in the future?

[Greg Clark]

The hon. Gentleman and I share a view about the importance of steel and manufacturing. At the University of Huddersfield, the national rail testing facility is a very important part of our contribution to increasing standards of technological development, so he is absolutely right. When it comes to the steel industry, the key thing is having an owner that, in my view, is willing and has an ambition to invest for the future. Since the official receiver is encouraged by the level of interest, what we in the support group—I would observe that it is a pragmatic group of people—want to do is to support those bidders to make sure that we have the long-term future we all want.

[Sammy Wilson (East Antrim) (DUP)]

It is important strategically and for regional employment to maintain a steel industry in the United Kingdom, and I do welcome the efforts that the Secretary of State has made to date. However, does he not realise that high-cost renewable energy plans and costly decarbonisation policies—pursued by this Government and previous Administrations, who, quite frankly, have pandered to a Luddite green lobby in this country—have resulted in energy-intensive industries moving out of Britain, with the aluminium industry being an example? These issues will have to be addressed if we are to maintain a viable steel industry in the United Kingdom in the future.

[Greg Clark]

My experience from conversations with the bidders for British Steel is that there is a recognition in the steel industry—not just in this country, but around the world—that the move to cleaner and greener production is happening globally. Actually, there is an opportunity to get ahead of that, as investing in improved energy efficiency and reducing carbon emissions will have to be done everywhere. Again, one of the purposes of the industrial strategy is to advance ourselves as a place where this has been done well and reliably and has been well supported. That, it seems to me, is best for the long-term future of steel making and other manufacturing, rather than attaching ourselves to a model that will be increasingly costly around the world. The future depends on being more energy efficient and greener.

[Stephen Kinnock (Aberavon) (Lab)]

The UK exports 2.6 million tonnes of steel to the European Union every year. It is estimated that a no-deal Brexit would add £70 million of additional administration costs and costs relating to border checks. Does the Secretary of State therefore agree that a no-deal Brexit represents an existential threat to the British steel industry, and will he be conveying that message loud and clear to his successor and to the incoming Prime Minister?

[Greg Clark]

I gently say to the hon. Gentleman that that message should be conveyed to all Members of the House who did not vote for a deal that would have provided, as British steel advised, the ability to trade in that way. My views on the desirability—in fact, the imperative—of having a good deal that allows us to trade without introducing barriers and frictions are well known to the House, and indeed beyond. What I will say is that at this time, when potential purchasers are considering British steel, actually it is not the case that the steel industry would not have a future in the event of different forms of Brexit. It is very important to convey to prospective buyers the fact that the industry that exists, with its opportunities domestically and internationally, and with the quality of its workforce and of its steel production, is attractive in itself and will not be trumped by the Brexit settlement. It is important that those prospective buyers have confidence, as some of them have having done their due diligence, that this is a good investment in all circumstances.

[Peter Kyle (Hove) (Lab)]

May I first thank my hon. Friend the Member for Redcar (Anna Turley) for her advocacy in the Chamber and—those of us who also know her as a friend know this—for her tireless activism on behalf of the steel sector, which has no better advocate? I also thank the Secretary of State; in a time of upheaval on the Government Front Bench, I hope that one point of consistency will be his position there. He has explained in the past, and in many appearances here in the Chamber, that the steel sector does not quite fit the criteria for a sector deal. Does that mean that we need to look at how the sector deals themselves are operating, to see whether they could be tailored to support such a vital industry?

[Greg Clark]

I am grateful to the hon. Gentleman for his kind words. It is not that the sector deals do not fit at all; it is that that would require investment on behalf of the industry, the players in the sector, and in recent years that investment in the future has not been as readily available or forthcoming as it has been in other industries. I hope that will change. I have a big appetite to invest alongside the sector, as we do in others, so there is absolutely no question but that it is available, and I hope that we will be able to conclude one very quickly.

[Alex Cunningham (Stockton North) (Lab)]

I, too, welcome the Secretary of State’s work and lament the likelihood that he will not be there to see the deal through and a foundation industry saved, alongside many jobs, many of which are in my constituency. When he leaves a little note for his successor, will he show his true Teesside-born credentials and just tell them that they must do all they can to get the deal across the line, and that they must not fail?

[Greg Clark]

The hon. Gentleman seems to have powers of prediction that are certainly beyond me. I think that Hansard this afternoon will provide the little note—perhaps an extensive note—that he has in mind.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The prize for patience and perseverance goes to Jonathan Edwards.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Diolch yn fawr iawn, Madam Deputy Speaker. In February this year the EU put in place a definitive safeguard strategy on steel imports, covering 26 steel product categories. It put in place a 25% tariff once the quota has been surpassed. What analysis have the British Government undertaken of the impact on the UK steel sector of leaving the EU customs union, in terms of exports to our biggest market and imports to the UK?

[Greg Clark]

We have been very clear in the discussions that have been taken prospectively. Obviously, the arrangements are not settled until the Brexit conclusions are settled, but we have been very clear in a number of product areas that safeguards should be available and should be used for precisely the purpose they have been so far and will be needed in future.

Consumer Update

Greg Clark Excerpts

Tuesday 23rd July 2019 Written Statements

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

Last week, on Thursday 18 July, I gave a speech at the Social Market Foundation which considered three current challenges in relation to competition. The speech is available on the Department’s website at https://www.gov.uk/government/speeches/competition-rules-must-continue-to-evolve-with-emergence-of-digital-platforms.

The three challenges are: reducing consumer harm caused by the “loyalty penalty” in sectors such as cash savings, mortgages, household insurance, mobile phone contracts and broadband; second, addressing the new competition issues that are arising in digital markets, including in relation to the market power of large platforms; third, harnessing the power of competition to raising the UK’s productivity.

In conjunction with this speech, the Government last week brought forward publications relating to the role and performance of the UK’s competition institutions. Together, these pave the way for further consideration of potential reforms to address the challenges identified.

Strategic steer to the Competition and Markets Authority

On Thursday 18 July, I published the Government’s strategic steer to the Competition and Markets Authority (CMA). For each Parliament the Government issues a non-binding strategic steer to the CMA. The intention of the steer is to support the CMA in achieving its legal duties and objectives to promote competition, both within and outside the UK, for the benefit of consumers and the UK economy. The steer provides a transparent statement of how the Government sees competition fitting with its wider objectives for the economy alongside the CMA’s accountability framework.

Review of aspects of competition law

I also laid before Parliament on 18 July the review of aspects of the law on competition as required under sections 46 and 56 of the Enterprise and Regulatory Reform Act 2013. The review considers the effectiveness of competition enforcement and changes made to the competition regime by the 2013 Act.

The review finds that the direction of travel is broadly positive. More competition cases are being opened, merger reviews and market studies are being brought to a conclusion more quickly, and stakeholder views suggest a good degree of confidence in the regime.

The review notes that we need to consider how well-equipped the UK’s competition framework is to respond to current and future competition challenges. In its upcoming Competition Green Paper, the Government will take a wide-ranging look at the institutions, powers and tools that promote and enforce competition in the UK.

Consultation on the statutory audit services market

The Government have also published a consultation in response to the statutory audit services market study by the Competition and Markets Authority (CMA).

We have a problem with audit quality, as has been recognised and analysed by Sir John Kingman’s review, the BEIS Select Committee, the CMA and, more recently, the Financial Reporting Council itself. This is why it is right that we continuously review our audit regime to maintain the UK’s world-leading position.

In October 2018,1 asked Lord Tyrie, Chair of the CMA, to consider what can be done to improve competition in the statutory audit sector. I took this action because I want the UK to continue to benefit from a high-quality, competitive and resilient audit services market. Good governance underpins our modern industrial strategy and audits are a vital contributor to the trust and confidence required in a modern economy.

The CMA’s final report concluded that the statutory audit market has fallen short of what the UK needs in a modern economy, and made a series of compelling and wide-reaching recommendations to improve quality and increase choice in the audit market. I am most grateful to Lord Tyrie and his colleagues for their detailed and comprehensive study, which captures evidence and views from a wide variety of stakeholders. I share their concerns, and I am pleased that this study complements a wider body of work being undertaken to improve audit quality. Most importantly, we have endorsed Sir John Kingman’s recommendation to replace the Financial Reporting Council with an independent statutory regulator with a new mandate and powers.

The Government are committed to creating a fit-for-purpose and proportionate regulatory regime that delivers a competitive and resilient audit market that works for shareholders, investors and the wider public. I would welcome views on the CMA’s final proposals. I would also strongly encourage proposals from the sector outlining what they believe could be done to address the CMA’s concerns on a voluntary basis ahead of regulatory intervention. The Government will then develop a full set of proposals for reform taking account of both the recommendations from the CMA and the outcome of Sir John Kingman’s Review of the Financial Reporting Council. I do not believe that the Government need wait on the outcome of Sir Donald Brydon’s review of the purpose of audit before continuing with the process of reform of the audit market.

The consultation document will be placed in the Libraries of both Houses and is available on the gov.uk website. The consultation is open for 8 weeks and I look forward to the continued contribution of interested parties.

[HCWS1794]

Energy Policy: Net Zero Emissions

Greg Clark Excerpts

Monday 22nd July 2019 Written Statements

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

On 27 June, the UK became the first major economy in the world to legislate to reach net zero emissions by 2050.

Achieving this target will require significant changes in the way we produce, deliver and use energy. We will need to harness the power of innovation and new technology to ensure the energy system remains flexible and resilient. We will need to provide confidence to businesses across the country to invest in a greener future by maintaining clear and stable policy frameworks. We will also have to ensure that as we move to cut greenhouse gas emissions across the economy, the security of our energy supplies is never in doubt and energy costs are kept low for all households and businesses.

As we set out on the path to reach net zero emissions, the Government are today outlining a series of important reforms across the energy system. These include new approaches to how low-carbon infrastructure is financed, potential changes to the retail energy market so it works better for all consumers, a new strategy for tackling fuel poverty and significant changes to the way we set the detailed rules that govern the energy system.

The action we are taking today is only a first step. Continuous action over the next three decades by successive Governments will be required if we are to end the UK’s contribution to global warming and inspire the necessary action at a global level.

The Government have today published the following public consultations and reviews:

Regulated asset base financing model for new nuclear projects

The Government committed in January 2019 to publish an assessment of the regulated asset base model as a means of financing new nuclear projects. We are today publishing that assessment as part of a public consultation on the regulated asset base model. The purpose of this consultation is to set out the basis for our assessment and to seek views from a range of interested parties on how it could be implemented within the current energy system in such a way that allows new nuclear to be built at low cost to consumers. The consultation includes a set of core principles that have resulted from our feasibility assessment and considers important issues such as the approach to risk-sharing under such a model. This consultation will be open for responses until 14 October 2019.

Business models for carbon capture usage and storage (CCUS) projects

As we committed to in the CCUS action plan, we are today publishing a consultation on how we can bring CCUS projects to market in the years ahead. This is an important step in order to meet our action plan commitment of delivering the UK’s first CCUS project from the mid-2020s. The consultation seeks views on possible CCUS business models for industry, power, and carbon dioxide transport and storage, as well as a framework to support hydrogen production with CCUS. The consultation sets out the risks that are inherent in first of a kind CCUS projects, and the possible delivery and co-ordination challenges of deploying CCUS at scale. This consultation will be open for responses until 16 September 2019.

The re-use of oil and gas assets for carbon capture usage and storage (CCUS) projects

This consultation fulfils the Government commitment in the CCUS action plan to identify existing oil and gas infrastructure that has the potential for re-use and to develop a policy to support the development of CCUS in the UK. It seeks views on whether Government should introduce a discretionary power for the Secretary of State to remove the decommissioning liability from previous oil and gas asset owners if assets are transferred to CCUS projects; and on changing guidance from the Oil and Gas Authority and Government to encourage owners and operators of oil and gas assets to propose a period of suspension prior to decommissioning in circumstances in which there is a reasonable prospect of the asset being acquired by a CCUS project. This consultation will be open for responses until 16 September 2019.

Flexible and responsive energy retail markets

The consultation is issued in partnership with Ofgem and sets out a vision for the future energy retail market, the key challenges which the Government and Ofgem wish to address, and the outcomes the retail energy market needs to deliver for all consumers. This includes how the regulatory framework may need to change to facilitate the introduction of innovative products and services that may face barriers today and could support our transition to a greener future. The consultation assesses the case for making reforms which could remove market distortions so as to improve the functioning of the energy retail market as a dynamic and competitive sector. The consultation also outlines how the energy retail market can benefit all consumers, ensuring they are able to secure a fair deal and receive a good level of customer service. This consultation will be open for responses until 16 September 2019.

Reforming energy industry codes

This consultation seeks to address the fact that the way the detailed rules governing the energy system are managed may be frustrating the shift towards a greener future. The consultation suggests creating a new function to translate the Government’s vision for the energy system into a strategic direction for codes, as well as giving code administrators more power to change codes, ensuring that vision can be delivered. We propose creating a new process that allows for greater agility in how codes and code changes are governed. We also set out an approach that will ensure we can deliver rules that are clear, accessible and simpler. This consultation will be open for responses until 16 September 2019.

Fuel poverty strategy

We are consulting on proposed reforms to the 2015 fuel poverty strategy to ensure that the actions we are taking to support people out of fuel poverty are as effective as possible. This includes a potential change to the way that fuel poverty is measured to ensure that we are able to include all those living in fuel poverty. We also propose making changes to ensure that those most at risk from living in a cold home get the support they need by aligning our fuel poverty policies with medical evidence. We are also proposing a new principle which would ensure that policies contributing to the fuel poverty target are complementary to other Government priorities such as the clean growth strategy. This consultation will be open for responses until 16 September 2019.

Capacity market five-year review and consultation on proposals for capacity market emissions limits

We are today publishing a five-year review of the capacity market mechanism. This review has found that the scheme is working effectively and performance against the original objectives has been achieved. In considering the future of the scheme, we propose focusing on specific areas of the scheme that will need to change as we maintain security of electricity supply while also moving towards net zero emissions. One of the first steps we propose to take is to implement a restriction on the most polluting types of energy generation, such as coal, within the capacity market by introducing new carbon emissions limits. To implement these changes, we are today issuing a public consultation on carbon emission limits within the scheme. This consultation will be open for responses until 2 September 2019.

Facilitating energy efficiency in the electricity system

Increasing our ambition on improving energy efficiency across the UK energy system will be vital if we are to reach net zero emissions. The electricity demand reduction pilot evaluation we are publishing today has concluded that energy efficiency projects are not yet ready to enter the GB capacity market. We are therefore publishing a call for evidence on market barriers to energy efficiency, and how we can create new markets for energy efficiency and secure its role in the wider energy market. This includes considering how energy efficiency could help reduce the requirement for network reinforcement and help compliment the growth in distributed generation. This call for evidence will be open for responses until 25 September 2019.

Funding for advanced nuclear technologies

In addition to the above consultations, we are today announcing that we are developing proposals to invest Government money in the creation of innovative small modular reactors (SMRs) which are less expensive to build than traditional nuclear power plants. As stated to this house on 17 January, we have received a proposal from a consortium of businesses, led by Rolls-Royce, which has proposed a significant joint investment of more than £500 million focused on designing a first-of-a-kind SMR. The consortium expects to more than match any Government funding both by direct investment and by raising funds from third party organisations that wish to invest.

The Government can today confirm that the consortium’s proposal has been accepted into wave 3 of the industrial strategy challenge fund. The challenge is to design a working model that could be operational by the early 2030s. We are looking to make an initial award of up to £18 million to the Rolls-Royce led consortium in early autumn 2019. This is subject to final decisions to invest, including business case and other approvals, and this consortium representing the best option for pursuing this technology. The Rolls-Royce led consortium believes this new technology could create 40,000 jobs at its peak and each power station could produce enough clean energy to power 750,000 homes.

This money is alongside up to £45 million to be invested in the second phase of the advanced modular reactor programme, with project bids currently under consideration.

The Office for Nuclear Regulation and the Environment Agency plan shortly to publish their modernised guidance for developers of SMRs on their generic design assessment, the process through which reactor designs are scrutinised by the regulators prior to further necessary regulatory steps, including site specific assessment and issuing of site licence and environmental permits, to enable subsequent deployment.

[HCWS1789]

Oral Answers to Questions

Greg Clark Excerpts

Tuesday 16th July 2019 Commons Chamber

[Peter Heaton-Jones (North Devon) (Con)]

1. What plans he has to establish a tourism sector deal under the Industrial Strategy.

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

This summer we should recognise the vital role that visitors play in the UK economy—particularly, I might say, overseas sporting visitors. Overseas visitors spent nearly £150 million in Devon last year, supporting jobs and growth throughout the county. Our new sector deal with the tourism industry was published last month, and includes commitments to an additional 10,000 apprenticeships annually and an extra 130,000 hotel rooms.

[Peter Heaton-Jones]

As the Secretary of State will know, the best place to visit as a tourist is, of course, North Devon. I welcome the publication of the tourism sector deal, but will he look favourably on the granting of tourism zone status to my constituency? Will he also join me in thanking all those who work so hard at this time of year in the tourism and hospitality industries, especially the North Devon Marketing Bureau, which does such good work in ensuring that people know that North Devon is the place to come to?

[Mr Speaker]

Including the Woolacombe Bay Hotel.

[Greg Clark]

That is a great endorsement, Mr Speaker.

I certainly join my hon. Friend in recognising that what is a time for holidays for many people is a time of intense work for people in the hospitality and tourism industries throughout the country. I also recognise North Devon’s bid to become one of the tourism zones. As my hon. Friend knows, the sector deal includes an investment of more than £26 million in the English coastal path, one of the most beautiful and popular attractions in his very beautiful constituency.

[Tim Farron (Westmorland and Lonsdale) (LD)]

20. Given that 20,000 non-UK staff work in tourism in the Lake District, there is a desperate need for home-grown talent, whether we leave the EU or not. However, the Government have watered down the already delayed catering and hospitality T-level, which no longer includes hospitality. Will the Secretary of State undo that backwards move, and fast-track a catering and hospitality T-level to next year?

[Greg Clark]

If the hon. Gentleman looks at the sector deal, he will see a great commitment to the development of careers in the hospitality industry, including 30,000 apprenticeships a year. The new T-levels have been developed in conjunction with the sector. I hope the hon. Gentleman will acknowledge that that is a great step forward, and that they will be available as a result of the commitment that has been made.

[Steve Double (St Austell and Newquay) (Con)]

I am tempted to say that the best thing about Devon is that it is the place that one drives through on the way to Cornwall, which has again been recognised as the UK’s best and favourite holiday destination. I welcome the announcement of the tourism sector deal, but more than 50% of international tourists visit only London. What extra help can the Government give to get more of them out of London, and into places like Cornwall?

[Greg Clark]

I am fearful that I shall find myself in an invidious position, given the competing claims of west country Members. All I will say is that, on this day of the 50th anniversary of the moon mission, my hon. Friend will know that Newquay’s unique claim to be in pole position for a UK spaceport adds to the already considerable attractions of his constituency.

[Bill Esterson (Sefton Central) (Lab)]

During last week’s Westminster Hall debate, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Rochester and Strood (Kelly Tolhurst), was enthusiastic when she told us that Amazon was leading the retail task group. I dread to think who the Secretary of State might have in mind for tourism—Airbnb, perhaps?

It is Labour that is standing up for the crucial sectors in our economy, not the likes of Amazon, with its exploitation of workers and undercutting of other businesses, not to mention its sweetheart tax agreements. When will the Government stop the gimmicks, and deliver not only hospitality deals but the retail deals that are so badly needed by those vital sectors of the economy?

[Greg Clark]

That is a strange point for the hon. Gentleman to make, given that our tourism sector deal—the subject of this question—has been hailed by the industry as a pivotal moment for it. Of course it is right to engage with all retailers of all sizes, but colleagues who represent rural communities will know that the outlets, national and international, that web-based platforms such as Amazon give to small rural businesses are very important to retailing. It is vital for that perspective to be part of the deal.

[Anna McMorrin (Cardiff North) (Lab)]

2. What steps he is taking to ensure a smooth transition to a zero-carbon economy.

--- Later in debate ---

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

3. What recent steps his Department has taken to protect consumers.

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

In June, the Government announced steps to ensure that consumers will not be punished for their loyalty. We are giving increased powers to the Competition and Markets Authority to fine companies that breach the law and to enable consumers to take control of the data that businesses hold on them.

[Kevin Hollinrake]

Mr Speaker, when you stay at the Woolacombe Bay Hotel, you may be paying 20% too much, because online agencies such as Booking.com use brandjacking clauses to colonise search results, and rate parity clauses, which mean that even if you go direct, you still pay 20% more than you need to. Other EU nations have banned this. Will we?

[Greg Clark]

My hon. Friend is absolutely right to raise that point. The Competition and Markets Authority is taking enforcement action against the major hotel booking sites precisely because of those concerns. It has already secured binding commitments from those companies, which will protect consumers in exactly the way that he recommends.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Why can we not protect consumers from having their goods delivered by companies such as Amazon in filthy, dirty, polluting vehicles? Why will the Secretary of State not step in and do something about that?

[Greg Clark]

We have already had exchanges across the Chamber on the move to electric vehicles. The investments of recent days are moving us towards a clean and green fleet. With his industrial interests, I know that the hon. Gentleman welcomes that.

[Mr Speaker]

Pithiness personified: I call Mr Philip Hollobone.

[Mr Philip Hollobone (Kettering) (Con)]

Is not the best way to protect value, service and price for consumers through the promotion of competition?

[Greg Clark]

I completely agree with my hon. Friend.

[Conor McGinn (St Helens North) (Lab)]

Consumers can sign up to long-term financial commitments for broadband, television and mobile phone services by clicking a few buttons online, but to cancel those services they have to fill out arduous forms, make numerous phone calls or even write to the companies involved. Will the Secretary of State look at that anomaly, to ensure fairness, and to provide the same mechanism for getting and stopping?

[Greg Clark]

For precisely those reasons, the issue is already being looked at by the Competition and Markets Authority. It is important that people are not penalised and do not find it difficult to extract themselves from commitments that are easily entered into. There needs to be fairness and transparency, and that is precisely what the CMA is engaged in.

[Chuka Umunna (Streatham) (LD)]

4. What assessment he has made of the effect of two-factor payment authentication on (a) consumers and (b) businesses.

--- Later in debate ---

[Justin Madders (Ellesmere Port and Neston) (Lab)]

12. What steps he plans to take to support the UK automotive sector in the event that the UK leaves the EU without a deal.

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

The industrial strategy chose to invest to make Britain a leading location for the next generation of vehicles, irrespective of Brexit. This month, we have worked with Jaguar Land Rover to secure the electric XJ at Castle Bromwich. Last week, I launched the new electric Mini, to be built in Oxford. Immediately after these questions, I am unveiling Lotus’s Evija, the UK’s first all-electric hypercar, made in Norfolk. I am determined that Britain’s automotive strength will flourish through the next generation of vehicles.

[Justin Madders]

As the Secretary of State knows, Vauxhall Motors in Ellesmere Port has a future if we can avoid a no-deal Brexit. In recent weeks, members of the Government have been falling over themselves to endorse a no-deal Brexit, despite the damage that will do to the automotive sector. Will he not put his own job ahead of those of my constituents—will he rule out a no-deal Brexit today?

[Greg Clark]

I am sure the hon. Gentleman welcomes the commitment given by Vauxhall’s owners to invest in Ellesmere Port, but he is absolutely right that they have said that that depends on a successful resolution of Brexit that means Vauxhall can continue to trade without tariffs and friction with the rest of the European Union. That reinforces how vital it is to secure such a deal.

[Nicky Morgan (Loughborough) (Con)]

13. What steps the Government are taking to help improve the viability of fuel cell manufacturing in the UK.

--- Later in debate ---

[Kevin Brennan (Cardiff West) (Lab)]

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

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

May I take this opportunity to say to the hon. Member for Salford and Eccles (Rebecca Long Bailey) that although she and I strongly disagree on various issues, including on the future of modern capitalism, we should be proud to have a shared commitment to reaching net zero emissions? Since our last oral questions session, the UK has become the first major economy in the world to pass laws to end its contribution to global warming by 2050, and companies from around the world are choosing to develop green technologies here in the UK. Last week I launched the new electric Mini, built in Oxford; the week before, Jaguar Land Rover announced that it is making a range of electric vehicles; and in an hour’s time I will be launching Lotus’s new electric hypercar. So, in keeping with what appears to be a new tradition of sharing pre-holiday gifts across the Dispatch Box, I would like to provide the hon. Lady with a small symbol—this model Mini—of what I hope will be our efforts to support our automotive industry, of which we are very proud, in its shift to a greener future.

[Mr Speaker]

I call Laura Pidcock.

--- Later in debate ---

[Kevin Brennan]

I will not take it personally, Mr Speaker.

While the Secretary of State is in the mood for holiday gifts, the latest Government statistics show that 61% of those working in music, performing and visual arts are self-employed, so will the Secretary of State update shared parental leave rules to include self-employed people to prevent talented women from having to leave their careers in the creative industries and other industries when they have children?

[Greg Clark]

The hon. Gentleman is absolutely right. We are evaluating the responses we have had from the creative industries and others on that issue. I fully recognise that it is an unresolved matter that we will address during the months ahead.

[Luke Hall (Thornbury and Yate) (Con)]

T4. The introduction of the national living wage has helped to raise the living standards of many of my constituents. What assessment has the Minister made of the impact of increasing the national living wage from 60% to 66% of median earnings and the ability of the retail sector to continue to grow its workforce considering that change?

[Laura Pidcock]

Given the reported use of food banks by staff in the Secretary of State’s Department, and given that the first ever indefinite strike action of outsourced workers in Whitehall is happening now, does the Secretary of State not see it as his duty at least to ensure that BEIS contractors are not breaking legislation? That includes potential breaches of regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003, whereby an employment business may not supply a temporary worker to a hirer to replace an individual taking part in official strike action. Can the Secretary of State please explain to the House what action he has taken on the issue following the Public and Commercial Services Union’s referral of the matter to the Met police, and letters sent to him and his permanent secretary on 10 July?

[Greg Clark]

I value very highly everyone who works in my Department, whether they are directly employed or employed through contractors. Of course, we will always require our contractors to obey the law. What we have done, and what I have acted to do, is make sure that our contractor staff are paid at least the average level across London for their employment. I know that that has been welcomed. I take the issue very seriously and I am grateful to the hon. Lady for raising it.

[Peter Heaton-Jones (North Devon) (Con)]

T5. Do Ministers agree that improving the whole A303, A30 and A358 corridor would remove a significant barrier to growth across the south-west and North Devon?

--- Later in debate ---

[Rosie Cooper (West Lancashire) (Lab)]

T6. Could the Secretary of State respond to the findings of Citizens Advice that utility companies have overcharged customers by £24 billion over 15 years?

[Greg Clark]

As I said in answer to earlier questions, the Competition and Markets Authority has recognised the unacceptable position of loyal customers being overcharged, and it is acting to correct that, as we have done in this House when it comes to energy bills.

[Trudy Harrison (Copeland) (Con)]

T10. Does the Secretary of State agree that nuclear energy must be part of the decarbonisation of this country? Could he update the House on progress made with the regulated asset base financial model and the energy White Paper?

--- Later in debate ---

[Greg Clark]

I work very well with not only the Scotland Office here but the Scottish Government, and I am happy to take that up after this session.

[Ms Esther McVey (Tatton) (Con)]

All forms of company are registered and incorporated with Companies House. While it is a great resource if used properly, it is open to misuse, abuse and fraudulent information. What steps will the Secretary of State take to ensure validation before companies are registered, so that the public can have faith in the register?

[Ms McVey]

Secretary of State, please.

[Greg Clark]

I am happy to respond to my right hon. Friend. The problem that she identifies is a real and present one. We are taking steps to require information given to Companies House, and therefore made use of, to be validated. [Interruption.]

[Mr Speaker]

Someone chunters from a sedentary position, “Can she do that?”—can the right hon. Lady demand that the Secretary of State, rather than some other Minister, answers the question? There is no prohibition. It is a matter of the force of personality, which the right hon. Lady has just eloquently exhibited, and it may well encourage copycat behaviour.

[Mr Gregory Campbell (East Londonderry) (DUP)]

What better week than this to discuss the potential for a tourism sector deal for Northern Ireland? After all, this week the sun has got its hat on, Rory’s out to play, the Open has come to Ulster—hopefully, it’s coming home to stay.

[Greg Clark]

I did not have the hon. Gentleman down as a poet, as well as his other accomplishments.

The sector deal that has been signed very much relates to the whole United Kingdom, and I hope the manifold attractions of Northern Ireland will be given a boost by the very good news that this sector deal constitutes for the industry.

[Andrea Jenkyns (Morley and Outwood) (Con)]

I recently visited Coca-Cola in my constituency. It will be investing £50 million in its Wakefield plant this year, providing jobs and apprenticeships to my constituents. Companies are investing in Britain, demonstrating that the future will be bright after Brexit. What is the Department doing to attract further foreign investment?

--- Later in debate ---

[Greg Clark]

You were right, Mr Speaker; this is becoming a habit. I am happy to respond to the hon. Lady. The ability—especially in the creative industries, but also in professional and business services—for people to ply their trade by visiting and working in other countries is essential. It is a big part of the negotiations, which I hope will result in a deal that allows a strong part of the UK economy to continue to flourish.

[Andrew Griffiths (Burton) (Con)]

Some 900 jobs were put at risk when Kerry Foods announced the closure of its plant in Burton. I know the Secretary of State has been in touch with the managing director of Kerry to press it on finding a new buyer. Will he commit to doing all he can to make sure that a new buyer is found and that those jobs are protected?

[Greg Clark]

I will indeed. I have been in touch with the owners of the site. My hon. Friend is absolutely right: the most important thing is that a new owner should be found for that historic site in Burton, so that it can continue its good track record of employment.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

The chief executives of Coca-Cola, Unilever, Nestlé and PepsiCo are indirectly responsible for much of the 8 million tonnes of plastic waste that ends up in our seas. Will the Secretary of State meet those chief executives to encourage them to adopt more sustainable packaging?

--- Later in debate ---

[Jack Dromey (Birmingham, Erdington) (Lab)]

It was a privilege to stand with 1,000 Jaguar workers and hear that the factory that built the Spitfire during the war and two generations of Jaguar after the war—it nearly closed 10 years ago—will now build the electric cars of the future. Will the Secretary of State, in welcoming yesterday’s announcement, join me in saying that we must now build the batteries in Britain so that we have a vibrant British industry?

Will the Secretary of State also join me in paying tribute to the remarkable man that was Lord Kumar Bhattacharyya for his championing of manufacturing in Britain and his drive, intellect and ambition for Britain and British workers? It is thanks to Kumar that the Jaguar plant remains open.

[Greg Clark]

The hon. Gentleman is absolutely right. It was a proud moment for all of us to have the commitment that Jaguar Land Rover has made. I know everyone is immensely proud not just of the history but of the future of that great company.

I join the hon. Gentleman in paying tribute to Lord Bhattacharyya, the regius professor of manufacturing at Warwick and the founder of the Warwick Manufacturing Group. I can announce to the House that, in recognition of his immense contribution, we are establishing two awards. The first is the Bhattacharyya award for collaboration between academia and industry, which will be a prize of £25,000 each year to the team who best show how industry and universities can work together. Because Lord Bhattacharyya was such a champion of inclusion and helped so many young people enjoy flourishing careers in engineering, we are establishing the Bhattacharyya engineering inclusion programme, working with school and further education college students in the west midlands. It will make available 80 bursaries a year for students from disadvantaged backgrounds to study engineering, and it will also support extracurricular activities to inspire the next generation of young people to study engineering.

[Several hon. Members rose—]

Taylor Review: Implementation

Greg Clark Excerpts

Tuesday 16th July 2019 Written Statements

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

The good work plan sets out the Government’s vision for the future of the UK labour market and how we will implement the Taylor review recommendations. It forms an integral part of the modern industrial strategy and this Government’s long-term plan to boost the productivity and earning power of people throughout the UK and to develop better jobs for all.

Today we are delivering the next phase of the good work plan. The good work plan recognised the vital role effective enforcement plays in ensuring confidence to challenge when the law is broken and in creating a level playing field between businesses. Establishing the director of labour market enforcement has been an excellent innovation, in terms of improving co-ordination across agencies, but we think we can go further. Today, we are publishing a consultation on new proposals for a single labour market enforcement body and will be seeking views on how the enforcement landscape could be simplified.

We will also be publishing the most recent director of labour market enforcement’s strategy, setting out recommendations for the Government which we will be carefully considering. The Home Secretary and I are very grateful to Sir David Metcalf for producing this report prior to his retirement and for all his hard work in this role. We are also delighted to announce that we have appointed a new interim director of labour market enforcement. Matthew Taylor, chief executive of the RSA, will be taking up this role from 1 August for 12 months.

The reforms we have announced today are the next important step in delivering on the good work plan and ensuring we have a labour market that is fit for purpose. We recognise that the world of work is changing and are delivering the necessary reforms to ensure the UK labour market can adapt effectively, and support the needs of both workers and employers.

Copies of the referenced consultation and the director of labour market enforcement’s strategy will be placed in the Libraries of both Houses.

[HCWS1726]

Tourism Sector Deal

Greg Clark Excerpts

Monday 1st July 2019 Written Statements

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

The Government’s modern industrial strategy sets out a long-term plan to boost the productivity and earning power of people throughout the UK. Sector deals bring industry and Government together in partnership to boost productivity in their sector and to ensure sectors are able to take advantage of major global changes such as those identified in the industrial strategy grand challenges. The tourism sector has the scale and geographical reach to deliver real change for local economies.

The deal that has been struck today means that the Government and industry have agreed a plan that will drive economic growth, underpin continued infrastructure investment and enhance the attractiveness of the sector as a long-term career.

Tourism zones will bring businesses and local organisations together to establish a co-ordinated strategy for growth in their local visitor economy—and a reduction in the impact of seasonality. Industry will deliver 30,000 apprenticeships in England per year by 2025 as well as leading a mentoring programme aimed at supporting 10,000 employees—so that they are more likely to remain in the sector.

The UK will continue to be Europe’s leading hub for hotel investment for the next decade with over 130,000 additional bedrooms added to accommodation stocks by 2025—with 75% of these outside of London.

A new independent tourism data hub will be created with support offered from some of our biggest travel companies. This will allow organisations, including SMEs, to make the most of the big data revolution to understand activity and product preferences in their area.

In conjunction with the sector deal, the UK Government have also published an international business events action plan. The action plan outlines in detail how the Government will support the business events industry in attracting, creating and growing international business events.

These mutual commitments are impressive but we want to go even further—ensuring that as many different visitors as possible can experience our tourism offer. That is why this deal commits to ensuring that the UK will become the most accessible tourism destination in Europe by 2025 and increasing the number of international disabled visitors by 33%.

Additionally, the introduction of sustainable development plans as part of the tourism zones policy sets a clear expectation on the sector to reduce its carbon footprint today, and in the future, helping the UK on its path to clean growth.

Taken together these measures are key in building a world-class experience economy and will ensure the tourism industry can continue to grow inbound visitor numbers by an estimated 25% by 2025. They will boost local economies by making best use of tourism assets throughout the year—ensuring we will be able to give the visitors of the future the very best of experiences throughout our country.

This is an ambitious deal—which is why joint delivery mechanisms are being established to ensure government and industry work closely together to deliver the plans. The UK Government will also work closely with the devolved Administrations—complementing their existing tourism strategies—and ensuring the benefits of the deal extend right across the UK. It is a deal that will support tourism and hospitality employees as the sector grows—helping it to remain a global leader, long into the future.

I will be placing a copy of this document in the Libraries of both Houses.

[HCWS1678]

CMA Loyalty Penalty Report

Greg Clark Excerpts

Tuesday 18th June 2019 Written Statements

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

Our competition, legal and regulatory frameworks are fundamental to our future economic success. We have a reputation for a world-leading competition framework and independent economic regulators with duties to protect the interests of consumers. However, where markets are not working for consumers, we will ensure that they are treated fairly. Today I published the Government response to the Competition and Markets Authority’s (CMA) loyalty penalty report. It is my intention that the UK’s competition and markets regime is firmly focused on delivering improved outcomes for consumers. That means ensuring that significant sources of consumer detriment, such as the loyalty penalty, are tackled quickly and effectively.

Following concerns raised by Citizens Advice in a “super-complaint”, the CMA uncovered harmful business practices by firms, which exploit consumer loyalty. The CMA investigation looked at the five markets highlighted by the super-complaint—cash savings, mortgages, household insurance, mobile and broadband—and found that there is a total loyalty penalty of around £4 billion a year in these markets. It also found that vulnerable people, including the elderly and those on a low income, may be more at risk of paying the loyalty penalty.

Our response to the CMA’s loyalty penalty investigation sends a strong signal that poor practices by suppliers will not be tolerated and sets out the following:

our intention to establish an administrative model of consumer enforcement for the CMA and to consult on how to do this as part of the forthcoming consumer White Paper

that the CMA and the economic regulators must do more to stop business practices that lead to the loyalty penalty, and that we are prepared to legislate to give our enforcers new tools to do so where necessary

that targeted price interventions, where proportionate, should be considered by regulators to tackle the loyalty penalty. Although pricing interventions should be a matter of last resort, it is vital that all potential interventions are considered to protect those who are most vulnerable

reiterates the commitments we set out in our smart data review, including creating an “open communications” initiative and establishing a vulnerable consumer challenge.

This builds on our consumer Green Paper, as part of our modern industrial strategy, published in April 2018, which tackles areas where markets are not working for consumers and businesses. We believe that all of these measures will help create the conditions for more effective competition and improve day to day outcomes for consumers.

I will place a copy of our letter to the CMA in the Libraries of both Houses.

[HCWS1629]

Local Industrial Strategies

Greg Clark Excerpts

Thursday 13th June 2019 Written Statements

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

Our modern industrial strategy is a long-term plan to boost productivity and earning power for people throughout the country.

Since 2010, local leaders, working in partnership with Government, have delivered historic city deals with Greater Manchester. There have been multiple devolution agreements resulting in devolved new powers including bus reform, the adult education budget and growth deal funding of £633 million.

Building on these strong foundations, we set out in the modern industrial strategy to work in partnership with places to develop local industrial strategies. Local industrial strategies are central to our aim of creating prosperous communities across the country. They are being developed locally and agreed with government. They are long-term, based on clear evidence and aligned to the modern industrial strategy.

On 16 May we launched the first of these strategies, the West Midlands local industrial strategy. Today we are launching the Greater Manchester local industrial strategy. This has been developed locally by the Greater Manchester combined authority, led by Mayor Andy Burnham, and Sir Richard Leese, Leader of Manchester City Council, supported by the local enterprise partnership and Greater Manchester partners, and agreed with Government.

This ambitious strategy sets out how Greater Manchester will work in partnership with Government to:

Set Greater Manchester up to be a global leader on health and care innovation, creating new industries and jobs, improving population health and extending healthy life expectancy, and working to identify a home for a prospective international centre for healthy ageing;

Position Greater Manchester as a world leading region for innovative firms to experiment with, develop and adopt advanced materials in manufacturing, including University of Manchester work to establish “Graphene City” in the centre;

Build on Greater Manchester’s position as a leading European digital city-region, to maximise growing assets in cyber security;

Enable the digitalisation of all sectors, and capitalise on the links between digital and creative industries that feed internationally significant clusters in broadcasting, content creation and media;

Launch the UK’s first city-region clean growth mission to achieve carbon neutral living in Greater Manchester by 2038; and

Ensure that the education, skills and employment system allow everyone to reach their potential and employers have access to the skills required to deliver the Greater Manchester local industrial strategy.

Greater Manchester is a growing economy with a growing population of 2.8 million. Our shared national and local ambition is for the Greater Manchester local industrial strategy to boost productivity and people’s earning power through our collaborative national, regional and local leadership, recognising the economic strengths and potential of Greater Manchester.

A copy of the Greater Manchester local industrial strategy will be placed in the Libraries of both Houses.

[HCWS1616]