Good Work Plan

Debate between Greg Clark and Kevin Foster

Monday 17th December 2018 Commons Chamber

[Greg Clark]

I mentioned the Disability Discrimination Act, which was a landmark piece of legislation. One aspect of enforcement and clarity that the new regulations and legislation will bring in is on the right to be free from discrimination, including on grounds of disability, to make sure that that is, first, clearly understood and, secondly, more effectively enforced. This is a further step to promote that very important set of rights for workers.

[Kevin Foster (Torbay) (Con)]

I very much welcome the tone and content of the Secretary of State’s statement. Torbay’s economy is very dependent on the tourism industry, where there are not only many gig workers who literally undertake gigs, but those who do part-time or agency work. How does he see the plans he is setting out today striking the balance between the need to have an industry that can employ seasonally and flexibly, and ensuring that workers can have certainty in their employment?

[Greg Clark]

My hon. Friend speaks from great experience; he knows that the report and these reforms seek to capture the right balance. That includes making sure that the tourist industry, for example—which, to a certain extent, is seasonal—can operate in such a way that it is possible to take people into employment during times of peak demand, and so enable prospering during the year, while recognising that people have a legitimate reason for wanting to build a career in the hospitality sector and giving them the right to request a stable contract.

I want to remind the House of the emphasis that Matthew Taylor puts on good work, looking at how we can increase the level of skills and opportunities for advancement in work. That is an important part of the industrial strategy and of the reforms we are making. As well as the protections for workers, giving greater opportunity is very much the hallmark of this report.

Leaving the EU: Airbus Risk Assessment

Debate between Greg Clark and Kevin Foster

Monday 25th June 2018 Commons Chamber

[Greg Clark]

As I think I made it clear throughout my statement, I do not agree—unusually—with my right hon. Friend on this point. I think that businesses have a right to speak out if they pay taxes and employ people, and we are determined that they will be able to continue to succeed in the future.

[Kevin Foster (Torbay) (Con)]

Having visited the Airbus facility in Bristol, I am pleased to note the tone and nature of the Secretary of State’s remarks. Will he confirm that the aviation industry is increasingly working on a global basis—there are even direct flights from here to Australasia now—and that that will not change after Brexit?

[Greg Clark]

My hon. Friend is absolutely right. We want to be able to take advantage of increasing global opportunities, but to do so without losing the advantages that we have from what have been very successful trading relationships within Europe.

Energy Policy

Debate between Greg Clark and Kevin Foster

Monday 25th June 2018 Commons Chamber

[Greg Clark]

The figures are taken from the Hendry report—these are not Government figures; they were laid out there. The number of jobs created during the construction period would have been 2,260, but they would have been for the very limited period of construction. In terms of value for money, of course, the permanent jobs are what needs to be assessed.

[Kevin Foster (Torbay) (Con)]

Will the Secretary of State reassure me that he will continue to make these types of decisions based on clear analysis, rather than political convenience?

[Greg Clark]

It has to be the case that when we take decisions that have consequences for consumers and businesses that already face, in energy-intensive industries, high energy costs, we have to act responsibly both for households and the future competitiveness of those companies.

Retail Sector

Debate between Greg Clark and Kevin Foster

Wednesday 6th June 2018 Commons Chamber

[Greg Clark]

Across the country, from time to time, businesses will close. I am familiar with Grimsby, as the hon. Lady knows, and one of the actions we are taking, which I know she will support, is to have a town deal with Grimsby to make sure that we maximise the advantages locally. Freeman Street in Grimsby shows this phenomenon has been happening not just over the past 12 or 24 months; there has been a long-term change. Local dedication, based on knowledge of the local environment, is required to have the best prospects for a revival.

[Kevin Foster (Torbay) (Con)]

The Secretary of State rightly refers to the fact that towns have to look at change. Does he agree that in many cases it will be for local authorities to examine what the needs of a modern town centre are as a destination, rather than at what its needs were in the 1950s and 1960s, in a very different retail era?

[Greg Clark]

My hon. Friend is exactly right about that. Of course many of our towns acquired shopping centres and shopping malls to make them more attractive at that time, which again was a big change. There is constant change in what the offer and draw of town centres is, and local authorities are very active in thinking about how they can make their places as attractive as they can.

According to the latest market data for the last five years, covering the period from 2013 to the end of 2017, 191 retailers in this country have gone into administration. That compares with the 202 that did so in the five years before, so we have not had the sudden collapse that the hon. Member for Salford and Eccles was hinting at. During the last five years, the number of stores affected by those failures was 7,429, compared with 19,639 in the previous five years. So it is very important that we do not paint a picture of British retail undergoing some sort of experience that has never happened before; we need to make sure that its dynamism results in positive outcomes and not regard this as completely out of the ordinary.

The hon. Lady cited examples of closures and, as I said, they are hugely hurtful and worrying for everyone caught up in them. However, she conspicuously failed to mention the other side of the equation. If she reads Retail Week in any given week, she will see example after example of stores that are opening and of companies that are expanding. She could have mentioned that just in January the Co-op committed that it will open 100 new stores during 2018, creating 1,600 jobs. Lidl is investing £1.45 billion in expanding its UK presence, and Aldi is now the fifth biggest retailer in the UK and it aims to have 1,000 stores by 2020. Lest anyone think that discount retail means discount wages, Aldi has pledged to become the UK’s highest-paying supermarket by 2020.

Our tastes and habits are changing. Home delivery from stores was once considered a relic of pre-war and immediately post-war times, but now it is increasingly standard for all the big supermarkets; Ocado has recently joined the FTSE 100 on the back of its growth. We have more and better choice through online retail than ever before, as colleagues have said. ASOS is now the UK’s largest clothing retailer by market valuation, and this week the British Retail Consortium showed that total retail sales increased substantially in May. The hon. Lady does the retail sector and the country a disservice by claiming that we are seeing an annihilation of the high street. We need to be much more practical and positive about the prospects.

However, our habits are changing. We are buying more and more each year— retail sales are buoyant—but we are choosing to buy more of that online, which of course provides a challenge. In 2007, 3% of total retail sales were bought online, yet in little more than a decade—by May this year—that had grown to 16.9%. That is a revolution in a short space of time. In the past 12 months alone, online sales rose by 11.9%, and clothing and footwear sales online rose by 24.1%. The consultants Oliver Wyman forecast that 40% of non-food retail sales will be online by 2030. That is how people are choosing to buy so, just as happened when supermarkets challenged individual shops, retail will look very different in the future. If we choose to buy 40% of goods online, not all the shops we have been used to will exist as they do today. As the British Retail Consortium says:

“We have too much retail space…there will be fewer shops and their role will be different”.

It says that they will be based on convenience fulfilment or, most likely, fulfilling a desire for experience and local community concentration. Those are the changes that the sector anticipates and wants to participate in.

Nuclear Power

Debate between Greg Clark and Kevin Foster

Monday 4th June 2018 Commons Chamber

[Kevin Foster (Torbay) (Con)]

Thank you, Mr Speaker; obviously you are saving the best till last.

I welcome today’s statement and the Secretary of State’s commitment to a new generation of nuclear reactors. He will be aware of the close link in France between nuclear and the navy and civil nuclear power in terms of long-term careers for those who serve in the submarines providing the deterrent. Will he do the same with our industry?

[Greg Clark]

My hon. Friend makes a very good point. The engineering skills we need in the armed forces and their civil applications can lead to careers that cross both. I will make sure that his recommendation is followed through.

GKN

Debate between Greg Clark and Kevin Foster

Tuesday 24th April 2018 Commons Chamber

[Greg Clark]

On the hon. Gentleman’s first point, the commitment to five years is the longest that has ever been given and was not something that Melrose was willing to offer the Business, Energy and Industrial Strategy Committee. In fact, the further undertakings that have been entered into on defence matters, which are of course in the aerospace division, go beyond that period.

I mentioned in reply to my hon. Friend the Member for Redditch (Rachel Maclean) that Airbus’s chief executive has not repeated the reports that were made previously. I have discussed the matter with Melrose and its intention is to develop a relationship that it hopes will prosper in the future.

[Kevin Foster (Torbay) (Con)]

Given that this is the first time that the process has been used, the Secretary of State has rightly focused on the legal undertakings that he has been able to extract from Melrose. Will he speak a bit more widely about the general discussions that he has had about the future role of GKN’s assets in his industrial strategy?

[Greg Clark]

I have been very clear in my discussions with both sides during the bid. It is important to have equal treatment when taking a quasi-judicial decision. GKN has an important role to play in our industrial strategy in two important sectors. GKN will be part of an aerospace sector round table later this week, and I expect it to live up both to its responsibilities and to the opportunities in this most exciting of sectors.

GKN: Proposed Takeover by Melrose

Debate between Greg Clark and Kevin Foster

Tuesday 27th March 2018 Commons Chamber

[Greg Clark]

I would be very happy, either by myself or with a colleague, to meet the hon. Lady. For matters of pensions, including steel pensions, the Pensions Regulator is quite rightly there to operate independently of Government and of the companies, to ensure that fair decisions are taken. That is a good arrangement, but I am happy to arrange the meeting she asks for.

[Kevin Foster (Torbay) (Con)]

I welcome the Secretary of State’s statement. In relation to the defence contract, is he aware of Melrose talking to the Ministry of Defence? What information will he seek from the Ministry of Defence in coming to a decision on a quasi-judicial basis in relation to whether there are national security concerns?

[Greg Clark]

I am grateful to my hon. Friend for his question. My understanding is that there have been discussions between the Ministry of Defence and Melrose. Should the bid be successful, the MOD and other agencies would then need to form a view as to any consequences it had for national security and advise me accordingly.

Industrial Strategy

Debate between Greg Clark and Kevin Foster

Monday 27th November 2017 Commons Chamber

[Greg Clark]

The hon. Gentleman is right to raise the issue. The productivity challenge that we face is about disparities. We have some of the most productive people and places in the world, but we have other places that are behind that level. The relentless focus of the industrial strategy is therefore on how we can close that gap by raising the earning power of those who are following. He will see that Wales—its industries and training and education system—is a prime area of focus throughout the strategy. I was pleased to work with Ken Skates, the Minister in the Welsh Assembly Government, to co-ordinate our work precisely to close that gap.

[Kevin Foster (Torbay) (Con)]

I am sure the Secretary of State will agree that a key test for the industrial strategy will be how it spreads prosperity to all parts of the UK. Does he agree that a good way of doing that in Torbay would be to agree the bid for an institute of technology to be built in Paignton?

[Greg Clark]

My hon. Friend makes another ingenious bid for the area. The history of technology in Torbay and the firms that have located there—I enjoyed meeting some of them on a visit with my hon. Friend a little while ago—provide particular reasons why it is an attractive location for such an institute.

International Investment

Debate between Greg Clark and Kevin Foster

Tuesday 17th October 2017 Commons Chamber

[Greg Clark]

The proposals can be introduced through secondary legislation, and I hope that they will find favour with the House so that we can proceed with that. There is an ability to act through other measures if there is a threat to national security, but the essence of these proposals is that this can be done in anticipation, rather than when a threat has crystallised. This is the right way to proceed, rather than waiting for a threat to be identified as imminent. This is about being prepared.

[Kevin Foster (Torbay) (Con)]

I welcome the Secretary of State’s statement and particularly the news about Bombardier. Does he agree that the Brexit vote was about us going out into the world and being part of the international trading community, not about withdrawing behind a wall? Will he therefore reassure me that, despite what we are saying about considerations of national security, we will remain an open advocate of free trade in the world?

[Greg Clark]

It is precisely because we are a leading advocate of free trade and open investment that it is necessary to have the right framework in place so that people can invest with confidence. In fact, in many cases, the steps that we are taking bring us into line with our competitor nations when it comes to trade, and I am absolutely confident that this regime will be respected and applied.

Oral Answers to Questions

Debate between Greg Clark and Kevin Foster

Tuesday 27th June 2017 Commons Chamber

[Greg Clark]

I should be very happy to do that. Nestlé is, of course, a major employer, and there is a cluster of food and drink and agriculture businesses in and around York. It has been identified in the industrial strategy as an area of real potential, and I look forward to working with the hon. Lady to realise that potential.

[Kevin Foster (Torbay) (Con)]

As the Secretary of State will know, expanding Torbay’s manufacturing sector is a key part of diversifying our economy for the future, but a lack of skills may hold us back. Will he confirm that the Government are still seeking to deliver institutes of technology throughout the regions in England?

[Greg Clark]

I will indeed. As I said in an earlier answer, the importance of upgrading our skills education is vital in all parts of the country, including Torbay, and institutes of technology are a way of making sure that industries can benefit from the particular skills that they need.