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.