GKN

Debate between Greg Clark and Kelvin Hopkins

Tuesday 24th April 2018 Commons Chamber

[Greg Clark]

For the first time in British corporate history, we have secured a commitment to spend, as a minimum, what the incumbent is already spending on research and development—that should be welcomed. Obviously, the reports of accounts and the disclosures that will need to be made to the markets will shine a light on the debt, but it is striking that it has been suggested today that £150 million was accounted for by unpaid suppliers’ bills at the end of the last quarter—I gather that is in the filings that have been released today—so I imagine the hon. Gentleman will want to study very closely with a beady eye the reports of accounts as they are published in the months ahead.

[Kelvin Hopkins (Luton North) (Ind)]

I am reminded of the Cadbury experience when it was taken over by Kraft. Undertakings were given about the factory in Bristol, which was sold off almost before the ink was dry on the deal. GKN is a company of national strategic importance not just to defence but to the wider economy and, indeed, to the Government’s much-vaunted industrial strategy. GKN should play a big part in that future.

If GKN were a German company in Germany or a French company in France this kind of speculative takeover would be prevented one way or another. One way to prevent it would be to have substantial stateholdings in such companies, and France, in particular, has done that over many years to make sure French companies remain French. Will the Government not look to France and Germany for the best way forward?

[Greg Clark]

Kraft’s takeover of Cadbury is exactly why we changed the rules so we can now have binding undertakings that are legally enforceable, unlike the situation that prevailed when the hon. Gentleman was in government. When it comes to the German system, in fact there is a substantial record of German companies being taken over.

Industrial Strategy

Debate between Greg Clark and Kelvin Hopkins

Wednesday 18th April 2018 Commons Chamber

[Greg Clark]

The hon. Gentleman knows Teesside very well. One of the things he would welcome is that in recent years the long-standing disparity, going back decades, between constituencies like his and others in the country has narrowed. There is a real sense of progress and achievement on Teesside that I experience every time I go up there; I was up there a couple of weeks ago. However, he is absolutely right that we need to continue that progress. We need to reflect on the fact that, as I said, many of the industries, skills and attributes that are in demand across the world now—marine engineering, for example—are abundant in areas like Teesside. We must capitalise on that, and we have a massive opportunity to do so. The industrial strategy, as he knows—our friends and colleagues on Teesside contributed very fully to it—has, for the first time in an industrial strategy, a real, very clear attachment to the importance of recognising the contributions of different places. This came out very strongly through the consultation, so he is absolutely right.

[Kelvin Hopkins (Luton North) (Ind)]

We have just seen a hostile takeover of GKN. Some of my constituents work at a GKN plant in Luton. Does this not look like a return to the kind of cowboy capitalism we have seen in the past, where hostile takeovers lead to asset-stripping that will make short-term profit, rather than being about the long-term interests of the economy and our manufacturing sector?

[Greg Clark]

The hon. Gentleman knows that I have a quasi-judicial role to exercise in response to certain takeovers, so I cannot comment on that particular case. I would say, however, that in technologies such as automotive and aerospace, there is a high degree of interest and, indeed, optimism about the future capabilities of companies right across those sectors and their supply chains. I mentioned marine engineering; aerospace and automotive are also examples of areas of British strength. The industrial strategy commits to build on that. My intention in implementing the industrial strategy is that our current strengths will be extended.

GKN: Proposed Takeover by Melrose

Debate between Greg Clark and Kelvin Hopkins

Tuesday 27th March 2018 Commons Chamber

[Greg Clark]

It is not for me to evaluate the competing bids, given that I may have a quasi-judicial role in determining whether to intervene. However, I thought it was right to set out the areas on which I would invite the bidder to state its intentions so that those intentions are clear not only to shareholders but to this House, including the hon. Gentleman, and members of the public, and they can make their own assessment.

[Kelvin Hopkins (Luton North) (Ind)]

I have constituents who work at the GKN plant in Luton, and I recently met trade union representatives who are understandably concerned about the future. Older Members in the Chamber, of whom I am one, will remember that hostile takeovers, merger mania and short-termism were core factors in the devastating era of asset stripping and deindustrialisation that led to the disappearance of vast tracts of British manufacturing and to our current yawning trade deficit. The Government are paying at least lip service to an industrial strategy, so will the Secretary of State now make that strategy real by stepping in to save one of our most historic and valuable manufacturing companies by simply stopping this takeover?

[Greg Clark]

The hon. Gentleman is aware of the regime under which we operate. I hope that he agrees that it is right, before the shareholders make their final decision, to encourage the company to set out more clearly than it has done its future intentions, not only so that that information is known, but so that, where it makes commitments, were it to succeed, it can be held legally to account for those.

Nuclear Safeguards Bill

Debate between Greg Clark and Kelvin Hopkins

2nd reading: House of Commons
Monday 16th October 2017 Commons Chamber

[Greg Clark]

It is very clear that membership of Euratom requires membership of the European Union, which is why we have this Bill. We have been satisfied with the arrangements we have, and part of the negotiation will be to ensure the greatest possible continuity, but that is to be negotiated with Euratom and the partners involved.

I have mentioned that the first requirement flowing from our commitments on safeguards is to have a domestic system that allows the state to know what civil nuclear material there is and where it is located, but the second fundamental principle of the global non-proliferation and safeguards regime is that there is some oversight of the system independent of the country itself. That provides obvious and necessary reassurance to the international community that material from civil nuclear programmes is not used other than for civil activities.

The UK has been a member of Euratom since 1 January 1973, and Euratom has carried out elements of both the domestic and the international activities set out in our agreements with the IAEA. The UK’s agreement with the IAEA on safeguards is a trilateral agreement, reflecting the relationship between the UK and Euratom. Upon withdrawal from Euratom, however, the UK’s main agreements with the IAEA will become ineffective, as they are predicated on Euratom membership. We are in discussions with the IAEA to agree replacements that reflect the UK domestic regime, including continued international verification by the IAEA. The Bill gives us the ability to give effect to precisely that regime. We have been working closely with the Office for Nuclear Regulation to ensure it will be ready to take on responsibilities for nuclear safeguarding that are currently delegated to Euratom inspectors.

[Kelvin Hopkins (Luton North) (Lab)]

Many professionals in the nuclear industry and outside academics are seriously concerned about the ongoing problem of what to do with nuclear waste from the civil programmes. Will the new arrangements simply parallel exactly what Euratom is doing or will they be stronger? Is the Minister not concerned that we still have to deal with the serious problem of long-term storage of civil nuclear waste?

[Greg Clark]

Let me say two things. First, we want to see maximum continuity of the standards—we do not want any reduction in them, as they have served us well and they give confidence to the industry. Secondly, the hon. Gentleman knows, from his many years in this House, that successive Governments have taken forward our long-term disposal of nuclear waste, and work on a long-term repository is being conducted, but that is a domestic responsibility, as it always has been.

Opel/Vauxhall: Sale to PSA Group

Debate between Greg Clark and Kelvin Hopkins

Monday 6th March 2017 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. I pay tribute again to the workforce in both plants and in Vauxhall’s other operations in this country. They are efficient and highly committed, and they have been very flexible. As technology changes, we need to keep their skills up to date. The automotive sector is aware of that and is working with the Government on institutions to train not just apprentices, but other people in the industry. That will have my full-hearted commitment.

[Kelvin Hopkins (Luton North) (Lab)]

The Secretary of State will be aware that the Luton workforce are brilliant. They produce a superb vehicle. Today’s news is very positive, but Britain is still a net importer of motor vehicle products, in particular high value added components. Will he discuss with PSA the possibility of developing more high value added production in the supply chain over here, particularly in view of the recent depreciation of sterling, which looks likely to be permanent?

[Greg Clark]

I am grateful to the hon. Gentleman for his engagement over the past few weeks. He knows the workforce in Luton well and what he says about them is absolutely right. There is a big opportunity across the automotive sector to increase the supply chain. It is one of the areas where we can make further progress in what is already a successful sector. We will do that through the industrial strategy and it will have my personal engagement.

Oral Answers to Questions

Debate between Greg Clark and Kelvin Hopkins

Tuesday 31st January 2017 Commons Chamber

[Kelvin Hopkins (Luton North) (Lab)]

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

[Greg Clark]

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

Industrial Strategy Consultation

Debate between Greg Clark and Kelvin Hopkins

Monday 23rd January 2017 Commons Chamber

[Greg Clark]

I am keen that we should be agile and fleet of foot. It is important that land and premises are available, not least for businesses that are expanding, or those that are being founded or located for the first time. My right hon. Friend the Communities Secretary has that very much in mind as part of his reforms to the planning system.

[Kelvin Hopkins (Luton North) (Lab)]

UK manufacturing and exports are benefiting greatly from the more sensible and appropriate parity of sterling, but much more needs to be done to rebuild Britain’s industrial strength. Will the Secretary of State therefore give serious consideration to re-establishing the National Economic Development Council to provide a forum for employers, trade unions and Government to consult and advise on how British industry may be promoted for the future?

[Greg Clark]

I am interested in the hon. Gentleman’s proposal. I had not thought of reviving a body that I think was associated with a different type of industrial strategy. The council was about the big employers sitting down with Government. As some of my hon. Friends have pointed out, the approach that we want to take is more about creating conditions in which insurgents, new businesses and challengers to existing businesses have a central place. I am not sure that his suggestion would be the right approach, but I would be interested in hearing from him about it.

Nissan: Sunderland

Debate between Greg Clark and Kelvin Hopkins

Monday 31st October 2016 Commons Chamber

[Greg Clark]

We have been discussing a fantastic new investment that not only will safeguard jobs in Nissan and across the country, through the supply chain, but will, no doubt—especially with more of the supply chain coming to locate in the United Kingdom—create new opportunities. Those opportunities will be for young people right across the country. There will be apprenticeships, traineeships and careers available that would not have happened if we had not secured this investment, so the hon. Gentleman should welcome it.

[Kelvin Hopkins (Luton North) (Lab)]

Nissan’s decision is brilliant news not only for the north-east, but for the whole UK. May I suggest to the Secretary of State that the exchange rate is a major and crucial factor in Britain’s competitiveness, and that maintaining an appropriate exchange rate is fundamental to future manufacturing success and investment? Will the Government be taking steps to make sure that the welcome depreciation of sterling since 23 June is maintained?

[Greg Clark]

As the hon. Gentleman knows, we have not targeted an exchange rate for some time. That policy is, first, not my remit and, secondly, not the way we approach the economy. However, it is true that there are many contributors to the competitiveness of the economy. What I need to do, and what I will do, is to take those things over which I do have influence and make them work for Britain.

Section 5 of the European Communities (Amendment) Act 1993

Debate between Greg Clark and Kelvin Hopkins

Monday 22nd April 2013 Commons Chamber

[The Financial Secretary to the Treasury (Greg Clark)]

I beg to move,

That this House approves, for the purposes of section 5 of the European Communities (Amendment) Act 1993, the Government’s assessment as set out in the Budget Report, combined with the Office for Budget Responsibility’s Economic and Fiscal Outlook, which forms the basis of the United Kingdom’s Convergence Programme.

I welcome this opportunity to listen to Members’ views on the British Government’s submission to be made this year under section 5 of the European Communities (Amendment) Act 1993. It is nice to see the hon. Member for Nottingham East (Chris Leslie) in his place. I think we have spent more time opposite each other than we have with our respective spouses in recent weeks.

As in previous years, the Government will provide information to the European Commission on the UK’s economic and budgetary position in line with our commitments under the EU stability and growth pact. This submission, known as the convergence programme, is a legal requirement under agreements this country has entered into, and of course the British Government take such commitments seriously. One must also say, however, that its very name represents something of a relic from a past age—a time when Britain was still ruled by a Government committed in principle to joining the single currency. I can assure the House that that era is well and truly dead and buried.

Members might well ask what purpose is served by this annual exercise and the associated debate in the House. [Interruption.] I thought that this might find an echo in the Chamber. Without wishing to anticipate Members’ contributions, which I look forward to, I would like to suggest three areas for this afternoon’s discussion. I wish first to debate British economic policy within the still relevant context of Europe; secondly, to consider the co-ordination of national economic policies across the EU; and thirdly to reflect on our great good fortune in not having joined the single currency, despite the siren voices heard in this place and elsewhere—thanks, in no small measure, to those who had the courage and foresight to speak against British involvement at a time when their warnings were subject to such derision.

[Kelvin Hopkins (Luton North) (Lab)]

I remember a time when all three major parties, the TUC and just about every good and great person across the land supported joining the exchange rate mechanism. I was one of those who from the beginning said that we should not do so. At the moment, we are all against the single currency, but I remember a time when even the Minister’s party was moving in that direction.

[Greg Clark]

I do not think that that is entirely right, although I happily acknowledge that the hon. Gentleman was on the side of right throughout. I remember working for the Foreign Secretary when he was leader of our party. In November 1997, when, as the hon. Gentleman said, the received opinion was that our joining was inevitable, my right hon. Friend made the courageous decision to set out in a lecture to the conference of the CBI, which then was in favour of joining, the forensic reasons why it would not be in our interests. He committed then, right at the beginning of the parliamentary process that resulted in these measures, to campaign for Britain to stay outside it. While I acknowledge the hon. Gentleman’s distinguished record, I think he would acknowledge that the Conservative party was the first party to commit itself to oppose these measures.

The Government plan to make their submission by 30 April, with the approval, we hope, of both Houses of Parliament. It explains the Government’s medium-term fiscal policies, as already set out in the 2012 autumn statement and Budget 2013, and includes the Office for Budget Responsibility’s forecasts. We think it right and proper to draw from previously published documents presented to Parliament, rather than incur the cost and time to produce bespoke documents for this purpose.

--- Later in debate ---

[Greg Clark]

In fact, some countries are recognising that, but we want to set an example. It is important that we stick to our plans and continue to benefit from the confidence that the markets have shown through the level of interest rates. We also say in our deliberations in Brussels, as well as making the point in budget discussions, that when times are difficult, belts need to tightened.

[Kelvin Hopkins]

I must say that I am astonished. It is almost as if no one in the Chamber has read the newspapers over the weekend and seen the IMF report that it got the premise for austerity completely wrong. Owing to a mistaken figure in a spreadsheet, we are all going for austerity, which is a terrible mistake. Is that not the reality?

[Greg Clark]

I do not agree with that. The hon. Gentleman will be aware that the IMF recommends to many countries around the world, not least in Europe—this is the point my hon. Friend the Member for Bury North (Mr Nuttall) referred to—that they should get their public finances in order.

When the Office for Budget Responsibility revised its forecast for global economic growth—and eurozone growth in particular—and world trade downwards, that had an inevitable impact on UK growth, given that the euro area is the destination for 40% of UK exports. Over the past year, net trade was the key factor in the underperformance of the economy relative to earlier OBR forecasts, as well as in the downward revision of the forecasts this year and the year after. Fiscal consolidation, on the other hand, has not had a larger drag on the economy than the OBR expected in June 2010. Indeed, the UK’s fiscal situation argues strongly in favour of maintaining our commitment to deficit reduction.

Opposition Members sometimes accuse us of going too far, too fast, but there is further to go and we must get there as fast as we sensibly can, not least because so much rests on the market-tested credibility earned by this Government. The near historic low gilt yields that underpin the low interest rates that are so important to millions of households and businesses cannot be put at risk. As shown by global developments, the consequence of losing market confidence can be sudden and severe. A sharp rise in interest rates would be particularly damaging to an economy weighed down by the burden of so much public, corporate and personal debt, built up during a time when it should not have been.

Cyprus

Debate between Greg Clark and Kelvin Hopkins

Monday 18th March 2013 Commons Chamber

[Greg Clark]

My hon. Friend raises an important point. I have made a commitment to the House to provide further statements once we have more detailed information on how all these arrangements are likely to apply.

[Kelvin Hopkins (Luton North) (Lab)]

This is clearly deeply worrying for the people of Cyprus, and we have to condemn what is being done to them, but it is also worrying for millions of working people across the whole eurozone. Is this not just the beginning of a situation in which Cyprus and other countries withdraw from the eurozone and, indeed, the euro itself may be wound up? Are the Treasury, the Government and the Bank of England making preparations for that eventuality?

[Greg Clark]

The Treasury and the Government always make contingency plans for many eventualities. It is important to reflect on the statements made by the German Government and by the ECB that the situation in Cyprus is very dissimilar to that prevailing in other countries. It would not be right to draw a parallel between what is happening in Cyprus and the situation that exists elsewhere.

Financial Services (Banking Reform) Bill

Debate between Greg Clark and Kelvin Hopkins

Monday 11th March 2013 Commons Chamber

[Greg Clark]

I should have thought that the hon. Gentleman would reflect on the fact that the Chancellor has many serious responsibilities and he is discharging them at the moment.

Let me talk about the process that we have followed, then I will address in some detail the particular aspects of content. The process that we have followed has sought to come up with the best possible way to address the dilemma that I described, and to do so by building, as far as possible, a broad consensus. That may not be there—yet—on every particular, but I think most Members would concede that Sir John Vickers’ commission has come closer to achieving that than many people thought possible.

The Independent Commission on Banking was established as soon as possible after the general election, in June 2010. It took extensive evidence before publishing an issues paper in September 2010 and an interim report in April 2011, on which it consulted, before publishing its final report in September 2011. The Government gave, and consulted on, an initial response in December 2011, before issuing a White Paper for consultation in June 2012. In the light of the responses to the consultation, a draft Bill was published last October and the Parliamentary Commission on Banking Standards was asked to subject it to pre-legislative scrutiny. The parliamentary commission’s report was published on 21 December last year and many of its recommendations were accepted in the Bill published in February and laid before the House.

At the time of introduction, I made it clear from the Dispatch Box that we would table further amendments in response to the commission’s future recommendations as the Bill proceeds through both Houses. I hope that Members on all sides would agree that this has been an exceptionally extensive process of both policy development and scrutiny of emerging proposals, and I repeat what I said to the right hon. Member for Wolverhampton South East (Mr McFadden) last month, that I will personally insist on taking a constructive and open-minded approach to the views of this House throughout the Bill’s passage. To the extent that the Bill reflects the unanimous views of Parliament, it is immeasurably strengthened.

[Kelvin Hopkins (Luton North) (Lab)]

Does the Minister accept that one of the major factors in the 2008 crisis was the complete failure of the auditing sector to get a grip on what banks were doing? Will he be putting forward proposals for strengthening audit for the future?

[Greg Clark]

That was not a set of particular recommendations in the reports that were commissioned, but I know that it is of some interest to members of the parliamentary commission and, as I will go on to say, we stand ready to consider their further recommendations, and I dare say they might have something to say in that respect.

Multiannual Financial Framework

Debate between Greg Clark and Kelvin Hopkins

Wednesday 31st October 2012 Commons Chamber

[Greg Clark]

Every budget negotiation under the seven-year framework has resulted in an increase. That must now stop. The next seven years must see an end to the perpetual ratcheting up of EU spending. The Prime Minister will be looking to achieve precisely that. As far as the Government are concerned, what remains of the rebate, after the predations of the Labour party, is absolutely non-negotiable. That means that even talking about it is a waste of time. Without it, our net contribution would be by far the largest in the EU, twice as big as that of France and more than one and a half times that of Italy or Germany as a percentage of gross national income.

[Kelvin Hopkins (Luton North) (Lab)]

Earlier in his speech the Minister said that the Government are opposing a real-terms increase. The figure involved would be significantly different from a money-terms increase. Would the Government not do better by asking for a freeze in money terms, not real terms?

[Greg Clark]

Our position is very clear: we want to see a cut in the EU budget. That is what all of us on the Government side of the House want. I will come on to explain the negotiating mandate that the Prime Minister has agreed with European leaders.

National Planning Policy Framework

Debate between Greg Clark and Kelvin Hopkins

Tuesday 27th March 2012 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for her contribution to the consultation. We have listened broadly. I know that people are cynical about consultation exercises, but I think they will find that practical and sensible suggestions have been listened to and incorporated. The community infrastructure levy will be introduced, and we are about to publish some regulations regarding the conduct of it. I will update her in a few days about when they will take effect. Among other things, the levy will provide funding for neighbourhoods for the first time, so that communities that host developments will get to share in the proceeds at a very local level.

[Kelvin Hopkins (Luton North) (Lab)]

My right hon. Friend the shadow Secretary of State touched on the fact that there are thousands of acres on which there is already planning permission for homes but the developers and builders are not building. What are the Government going to do to get them to build?

[Greg Clark]

Two things. First, the framework will allow those sites to be included in the housing assessment that is required. Secondly, as the hon. Gentleman knows, the new homes bonus is available for homes that are brought back into use as well as those that are built. That is a powerful incentive for councils to bring back into use homes that are not being used at the moment.