Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Tuesday 30th April 2019 Commons Chamber

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

3. What assessment he has made of the effect of uncertainty of the UK’s trading relationship with the EU on the delivery of the industrial strategy.

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

As the hon. Gentleman will know, there are huge opportunities for advanced manufacturers, especially in his region, and the sector benefits from a minimum of frictions in trade, so it is very important that we conclude a deal with the European Union.

[Mr Bailey]

I thank the Secretary of State for that reply and commend him for his approach. Boosting productivity is the declared objective of the industrial strategy, but it is plummeting at the moment due to Brexit uncertainty. Does he agree that it is absolutely essential that we get an early Brexit deal that delivers both a customs union and frictionless market access to the EU, because otherwise it is doomed to failure?

[Greg Clark]

I am a bit more optimistic than the hon. Gentleman in that respect, not least because of the announcement just yesterday from the Advanced Propulsion Centre, which he knows very well, about the opportunity of nearly £5 billion for manufacturers, including in the west midlands, to participate in the growing market for electric vehicle batteries. It is therefore crucial that we drive productivity forward. He will also know of the work that Jürgen Maier is leading, as part of the Made Smarter Review, to capitalise on the opportunities. However, as I have always been clear with the House, we can best advantage those manufacturers if they are able to continue to trade freely and without frictions with the European Union.

Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Tuesday 16th October 2018 Commons Chamber

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

The chief executive of Jaguar Land Rover has said that a bad or no deal Brexit would cost the company more than £1 billion a year and threaten its future investment in the UK. Can the Minister explain how that can be avoided if the UK is outside the customs union?

[Greg Clark]

It can be avoided by having a good deal based on the White Paper that was published earlier in the summer and that the motor industry has strongly endorsed.

Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Tuesday 12th June 2018 Commons Chamber

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

The decision by JLR to invest in electric vehicles is very welcome, but equally the decision to produce the Discovery model in Slovakia is profoundly worrying. Does the Secretary of State agree that it underlines the need for tariff-free access for both cars and components in the EU?

[Greg Clark]

I agree with what the hon. Gentleman said at the end—of course we need tariff-free access with a minimum of frictions to these important markets—but I disagree that this is not a sign of significant confidence. JLR is investing in the next generation of vehicles. I hope he will welcome that.

GKN: Proposed Takeover by Melrose

Debate between Greg Clark and Adrian Bailey

Tuesday 27th March 2018 Commons Chamber

[Greg Clark]

Such long-term commitments and partnerships are important, which is why they were among the concerns I raised with the bidding company, although it is obviously a matter for shareholders to decide. It is fair to observe that GKN has also proposed to make some changes to the ownership of its activities on the automotive side. My hon. Friend is absolutely right about our commitment to the very successful focus of our industrial society on the automotive and aerospace sectors, and I expect the owners of GKN—whether the existing management or an alternative—to maintain that very deep involvement in a very successful set of arrangements.

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

The Melrose commitment not to sell the GKN aerospace division before 2023 falls well short of the investment cycles of 20 to 40 years needed in the aerospace industry. It also fails to meet the concerns expressed by companies such as Airbus about the security of the long-term availability of the products they need. Will the Secretary of State commit to take whatever action is necessary, including blocking the bid, to preserve this division?

[Greg Clark]

The hon. Gentleman, who formerly chaired the Select Committee, went through the experience of Cadbury and Kraft and knows there is no ability to extract commitments on these matters. I know from speaking to him about this that he thinks the use of the new powers is a step forward in that respect. When it comes to investment in the future, it is for shareholders to compare the approaches offered by the management. He knows very well the powers I have and the regime I operate under, but, as I have told the House, on the grounds that I can consider, I will look very carefully at the advice I am given on the question of national security.

Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Tuesday 12th December 2017 Commons Chamber

[Greg Clark]

Both Honda and BMW have been part of the sectoral council that has helped to create institutions that have trained people, and developed research and development; they are a very valued part of the sector deal, which has been so warmly welcomed by the industry.

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

My constituency contains many small businesses involved in the supply chains for the motor industry. These chains stretch right across Europe and are largely regulated by European Union law. Will the Secretary of State make a commitment that these will not be disrupted by Britain’s exit from the EU?

[Greg Clark]

Given what he said, I hope the hon. Gentleman will welcome the supply chain initiative, which is at the heart of the sector deal to increase the level of UK content. But one way or another the motor industry, like so many others, is based on its good relations, not just across Europe, but around the world, and it is essential that the deal we do allows that to continue and indeed to prosper in the future.

Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Tuesday 12th September 2017 Commons Chamber

[Greg Clark]

Our exchanges this morning show the potential and the strengths that we have in successful sectors such as the automotive, healthcare and medicine, and satellite and space sectors, in which we are creating very good jobs. However, my ambition and my Department’s ambition—which I hope the hon. Gentleman shares—is to increase the proportion of women and other groups who are under-represented in those industries, because there is talent there that we should be using, and part of our drive is to get the best talent into those world-beating industries.

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

A recent report produced by Sheffield Hallam University found that the challenge fund had too narrow a sectoral focus, which was disproportionately benefiting areas in the south-east at the expense of traditional manufacturing areas in, for instance, the west midlands. What elements of the fund will benefit areas such as mine?

[Greg Clark]

I have not seen the report. I will look at it, but I think it is mistaken. The challenge fund includes, for example, the Faraday challenge, which I launched at the University of Birmingham along with many industrialists and academics from across the west midlands. It is proposed that the west midlands should be at the heart of the challenge. Investment in driverless cars, and in satellites and space, is taking place throughout the country. One of the big features of the challenge fund is that it reaches every part of the country, and, indeed, every part of the United Kingdom.

Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Tuesday 31st January 2017 Commons Chamber

[Greg Clark]

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

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

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

[Greg Clark]

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

Nissan: Sunderland

Debate between Greg Clark and Adrian Bailey

Monday 31st October 2016 Commons Chamber

[Greg Clark]

It is certainly part of a strategy: it is part of our industrial strategy to make sure that Britain is competitive in the future, as it is now and it has been in the past. We are taking a strategic approach. As the hon. Lady might imagine, I meet businesses large and small almost every day of the week, and in all the conversations I have, we discuss what is important, what challenges they face and what their strategic ambition is, so that I can be informed about that.

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

I welcome the Nissan decision and congratulate the Secretary of State on his role in securing it. I especially welcome his comments about research and development, and innovation. Given that the developing industry-university collaboration is crucial to that, as is the role of foreign students and researchers, what assurances did he give the industry that the Government will reverse the drop we have seen in the numbers applying?

[Greg Clark]

The hon. Gentleman seems to think that my discussions went broader than they did, but with everything I have said about research and development, our universities are key to that. As a former universities Minister, and now once again with responsibility for science, I will do everything I can to promote our research excellence and make sure it continues.

Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Thursday 26th March 2015 Commons Chamber

[Greg Clark]

We are very happy with the policy. The questions to be answered should be answered by the Labour party, because there is a £600 million gap in its ability to pay for its university policy. No wonder the vice-chancellors are concerned about the chaos into which that policy would plunge our universities.

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

As Chair of the Select Committee, I thank the Secretary of State and his team of Ministers, both current and past, for their unfailing willingness to appear before the Committee and be questioned on their policies. I also thank them for adopting so many of our recommendations, and hope that they will look again at those that they did not adopt.

According to the Office for Budget Responsibility, £12 million of the projected deficit from the non-repayment of student loans will be funded by the sale of the student loan book. Given the low rate of repayment of those loans and the low interest rate that they attract, what assessment has the Minister made of the incentive that may be needed to induce people to buy them?

[Greg Clark]

Preparations are continuing for the sale of the loan book during the next Parliament, and it is right that they should. I acknowledge the work of the hon. Gentleman, as Chairman of the Select Committee, in scrutinising this and other aspects of business during the current Parliament, but he should, perhaps, reflect on the words of a prominent Labour business person—indeed, the only prominent Labour business person. John Mills, who is Labour’s biggest donor, said that the party’s university policy would destabilise British universities and disadvantage “working class children”. He also said that it would hurt Labour’s economic credibility.

Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Thursday 12th February 2015 Commons Chamber

[The Minister for Universities, Science and Cities (Greg Clark)]

It is very important that businesses have a strong voice in the leadership of the local economy. That is what they are achieving through LEPs and it has been one reason why more than 2 million new private sector jobs have been created during this period. My hon. Friend has been an active campaigner for projects in her local area with some success, and I know that she will continue to influence the business and the local authority participants in her LEP.

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

T4. The Government have a target, signed off at the highest level, I believe, of achieving £1 trillion of exports by 2020, doubling the current figure in five years. When asked at the Business, Innovation and Skills Committee, a UK Trade & Investment representative described it as an “energising aspiration”. Is it an energising aspiration or is it a realistic, achievable target?

Higher Education Funding

Debate between Greg Clark and Adrian Bailey

Thursday 8th January 2015 Commons Chamber

[Mr Bailey]

I welcome the interventions of two former Ministers, which have shone an economic light on some of the most obscure elements of our education accounting.

To return to my point on the student loan book, the fact that the sale has now been abandoned underlines what my right hon. Friend said about the non-viability of this course of action in funding future financial higher education commitments.

In short, we have an education funding model that is producing an ever-increasing call on the nation’s finances, and actually further commitments are being added. The House of Commons Library paper projects that by the mid-2030s the addition to the national debt incurred as a result of this policy will be equivalent to 8%—about £350 billion to £360 billion at current prices. That is a huge sum of money that will have enormous implications for future Governments—and universities and students—in terms of financial planning.

[The Minister for Universities, Science and Cities (Greg Clark)]

I am sorry to pre-empt my response to the debate, but at the beginning of his contribution the hon. Gentleman mentioned the important benefit—he referred to it as unambiguous—to the Exchequer. Has he made an estimate of that benefit to set against the costs he is referring to?

[Mr Bailey]

I believe that these estimates are projected in the figures from the Institute for Fiscal Studies, and certainly there is the netting off if you like, of these figures. There will be benefits. I said in my opening comments that there would be benefits. However, to have this level of future debt without any policy recognition that it will have to be funded in the future accounts is complacent and, in my view, a dereliction of duty. I shall return to that in one moment.

It was because of the figures that the Committee recommended an urgent review of the sustainability of the system, and obviously the sort of figures the Minister mentioned would be incorporated in such a review. If the model does stack up, I do not see why the Government should have any problem undertaking that review to demonstrate it. In their reply to the Committee’s recommendation, the Government quoted, of course, Andreas Schleicher from the OECD—I believe this featured in exchanges earlier today:

“The Government has no current plans to initiate a formal review of the sustainability of the student loans system in England. Indeed the OECD’s Director for Education and Skills, Andreas Schleicher, considers that we are the first European country to have established a sustainable higher education system.”

However, the Government response did not mention, as the Minister’s earlier response did not, that Andreas Schleicher’s comments were about the pre-2012 funding model, not the current one.

[Greg Clark]

I was aware of this matter, and I was surprised to hear that with uncharacteristic discourtesy—it is not his normal demeanour—the shadow Business Secretary accused me of having misled the House in referring to this endorsement from the OECD. It is important to clarify to the House that I met the author of the report, Mr Schleicher, on the day he published it. I know that overseas visitors often do not get the chance to meet members of the Opposition Front-Bench team, but I had the great privilege of meeting him, and there was never the slightest doubt about what he meant. In fact, he wrote to me this week, on 6 January, having read the report from the shadow Business Secretary. He wrote: “I had made it very clear that the rise to £9,000 fees had not changed the overall assessment by the OECD.” In fact, it is in the opposite direction: “The UK higher education system is excellent for individuals and for the Government. England has got it right on paying for higher education. Among all available approaches, the UK offers still the most scalable and sustainable approach to university finance.” I hope that when he responds, the Minister, on behalf of the shadow Business Secretary, will apologise to me for his accusation.

[Mr Bailey]

Far be it from me to intervene in the exchanges between the Front-Bench teams on this point, but I stand by my earlier point: when this response was made, it was done on the basis of evidence submitted on the pre-2012 model.

Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Thursday 20th November 2014 Commons Chamber

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

8. What recent estimate he has made of the resource accounting and budgeting charge on student loans.

[The Minister for Universities, Science and Cities (Greg Clark)]

The most recent estimate of the resource accounting and budgeting charge is about 45%.

[Mr Bailey]

I thank the Minister for that admirably concise response.

On Monday, the Higher Education Commission published a report which effectively endorsed the statement in the report from the Business, Innovation and Skills Committee that the current finance system for higher education was unsustainable. The Government rejected the Select Committee’s report. In the light of the overwhelming evidence backing the report, will the Minister tell us what he is going to do about this?

[Greg Clark]

I do not agree with that report. Our system of student finance is in rude health. The OECD reviewed higher education systems throughout the world, and concluded that the

“UK is…one of the few”

countries

“that has figured out a sustainable approach to higher education finance”

and that

“that investment…pays off for individuals and tax payers.”

This year more students are going to university than ever before, and that would not have been possible without the reforms that we introduced.

Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Thursday 15th March 2012 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. On the subject of traditional craft skills, the enthusiasm and support of my hon. Friend the Minister for Further Education, Skills and Lifelong Learning are matched only by His Royal Highness the Prince of Wales. Indeed, I understand that the Minister for Further Education, Skills and Lifelong Learning granted an audience to the Prince and that the main topic of their conversation was the importance of traditional craft skills for the future. On that, I think there is complete agreement.

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

13. When he proposes to bring in the Groceries Code Adjudicator Bill.

Oral Answers to Questions

Debate between Greg Clark and Adrian Bailey

Monday 30th January 2012 Commons Chamber

[Greg Clark]

I certainly encourage my hon. Friend’s council to make all speed in producing its plan, as it is desirable that there should be a plan in place. However, the transitional arrangements that we will put in place will make sure that councils that are doing the right thing by planning for the future of their area will not be disadvantaged.

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

T4. The Minister’s Department estimates that neighbourhood plans could cost each council up to £63,000, but each council could receive only £20,000 at best. Given that both council planning and planning aid budgets are being cut, will the Minister explain just how these will be implemented without diverting scarce resources from other much-needed services?

[Greg Clark]

We have put funds aside to make sure that there is support for communities in preparing neighbourhood plans. In fact, we have another round of front-runners. We have been deluged with applications to get on with neighbourhood planning and we have heard examples of that from across the House today. We will make sure that there is support for all these communities.