Oral Answers to Questions

Matt Hancock Excerpts

Thursday 26th March 2015 Commons Chamber

[The Minister for Business and Enterprise (Matthew Hancock)]

The Small Business, Enterprise and Employment Bill contains radical steps to tackle late payment. We have prohibited the practice of paying to join or remain on supplier lists in certain circumstances. We recently consulted on going further and will now require large companies to report on these practices.

[Debbie Abrahams]

I have been campaigning for four years to end the blight of late payments to small businesses, including by ending controversial “pay to stay” contracts. The small business Bill is too little too late. Labour tabled amendments in Committee to end and outlaw the controversial “pay to stay” arrangements. Why did the Government oppose them, and in the light of recent revelations, will they now drop their opposition?

[Matthew Hancock]

I pay tribute to the hon. Lady’s long-standing and effective campaign on late payment. The amendments did not work technically, but I am prepared to consider anything to tackle the culture of late payment. We will make 30 days the normal payment term and 60 days the maximum. That is the culture change we need, and I look forward to working with her to make it happen.

[Toby Perkins (Chesterfield) (Lab)]

The Minister seems to be entering the realms of fantasy when he claims that the limited steps the Government have taken will put an

“end to the UK’s late payment culture once and for all.”—[Official Report, 24 March 2015; Vol. 594, c. 1357.]

According to the latest BACS figures, there were more than £46 billion of late payments last year—the highest figure on record—and that figure has continued to grow over the course of this Government. How much and by when would late payments need to fall for him to consider his steps successful in eradicating this culture once and for all?

[Matthew Hancock]

We do need to eradicate that culture, and I have already set out the steps we are taking. However, may I also take this opportunity to pay tribute to the work of the Business Secretary on this issue and many others over the past five years? We have had an incredibly business-like relationship working hard in the Business Department, and I pay tribute especially to his work on getting an industrial strategy that all parties in the House are now signed up to; to his work on women on boards; and on late payment. It has been a great pleasure, and I look forward to working with him in the future, too.

[Diana Johnson (Kingston upon Hull North) (Lab)]

5. What recent representations he has received from businesses on the importance of infrastructure development to business growth.

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[Richard Graham (Gloucester) (Con)]

8. What recent assessment he has made of the business potential of marine energy for UK suppliers.

[The Minister for Business and Enterprise (Matthew Hancock)]

We are strong supporters of marine energy and I can confirm to the House we have today granted funding to support Wave Hub, the world’s largest wave technology incubator in Cornwall.

[Richard Graham]

I understand that Tidal Lagoon Power, which is headquartered in Gloucester, will be sourcing at least half its £1 billion project in Swansea bay from UK suppliers. Will my right hon. Friend encourage UK Trade & Investment to work with me and the Gloucestershire local enterprise partnership to host a tidal energy supply chain seminar at our new growth hub at the university of Gloucester—and by the way this afternoon all Members will want to join me in congratulating it on announcing a new business school?

[Matthew Hancock]

I join my hon. Friend in congratulating the university on announcing a new business school. His question also demonstrates that tidal power reaches all parts of the country, and the fact that Gloucestershire can benefit from the £1 billion investment we are working on in the Swansea bay tidal lagoon announced by the Chancellor of the Exchequer at the Budget demonstrates the value of supply chains and energy investments throughout the country.

[Andrew George (St Ives) (LD)]

I thank the Minister for the Government’s support for the offshore Wave Hub, which is just to the north of my constituency. That is a welcome development. May I also draw his attention to the fact that the Swansea bay tidal lagoon proposes to source its stone from my constituency, which creates some challenges as it will have an impact on one of the Government’s important marine conservation zones?

[Matthew Hancock]

I am sure that that point will be taken into account. It is right that Wave Hub gets the support from Government that it needs. It is near Redruth, just north of my hon. Friend’s constituency, and I pay tribute to the work of my hon. Friend the Member for Camborne and Redruth (George Eustice), who has worked tirelessly to ensure its future.

[Joan Walley (Stoke-on-Trent North) (Lab)]

9. If he will make it his policy to promote origin marking on ceramic products.

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[Jeremy Lefroy (Stafford) (Con)]

T3. Alstom in my constituency has announced that it will build its replacement automation research and development and manufacturing centre on the new business park in Stafford, which is a far-sighted investment both by Alstom and by the county council, which constructed the park. Does my right hon. Friend the Minister agree that that demonstrates the importance of providing the infrastructure and incentives so that we retain manufacturing investment in the west midlands at the same time as attracting it from overseas?

[The Minister for Business and Enterprise (Matthew Hancock)]

I do agree with my hon. Friend and I pay tribute to him for his steadfast work in promoting manufacturing. On that subject, I can also announce to the House that we will make a £62 million investment today in ultra-low emission taxis, including support for roll-out by local authorities of charging stations. As a result, instead of being moved to China, production of the next generation London black cab is being secured for Britain in Ansty, with a £250 million investment by Geely in the London Taxi Company creating 1,000 new jobs and apprenticeships.

[Mr Chuka Umunna (Streatham) (Lab)]

This is indeed the last departmental questions of this Parliament and, Mr Speaker, it has been good to see you in your place at all of them. I have enjoyed my exchanges with the Secretary of State and note that during his time no fewer than nine Conservative minders have been sent to ensure, as his former deputy, the Defence Secretary, has intimated, that he does not slip his electronic tag. In all seriousness, despite all the efforts to promote certainty for business, does he agree that the biggest uncertainty facing business in this country is his Tory Prime Minister’s decision to flirt with EU exit and that the biggest mistake for his party would be to go along with it?

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[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

T5. The Secretary of State will know that the north-east is the only region with a balance of trade surplus, so he will appreciate the importance of exports to the regional economy. Is not it a major cause of concern that rhetoric from Ministers pushing Britain towards an EU exit risks damaging jobs, investment and exports in the north-east?

[Matthew Hancock]

No, far from it. The rate of job creation in the north-east is faster than the national average, and that has happened since we made it clear that there needs to be a referendum so that the British people can decide on our future position in the EU.

[Mark Menzies (Fylde) (Con)]

May I take this opportunity to welcome the recent announcement that Blackpool airport has been designated a joint enterprise zone with the one at Warton? What steps is the Minister taking to encourage businesses to move to enterprise zones such as the one in my constituency in order to stimulate further regional growth?

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[Dr Matthew Offord (Hendon) (Con)]

Although the Department has created many opportunities for business, one of the biggest concerns in my constituency is late payments to small business. What steps have the Government taken to address that problem?

[Matthew Hancock]

We are taking unprecedented steps to tackle late payment, including in the Small Business, Enterprise and Employment Bill, which we hope will become an Act today. A change in culture is needed to make 30 days payment terms the norm and 60 days the maximum. We are changing the prompt payment code to reflect that and to say, “If you don’t sign up to that and practise what you preach, you’ll get kicked off the code, so we can change this culture for good.”

[Mr David Hanson (Delyn) (Lab)]

T8. Over 9,000 people have phoned the RBS telephone helpline on the enterprise finance guarantee scheme. Does the Secretary of State—not the Minister—agree that whoever holds his position after the election should order an urgent investigation into the use of the enterprise finance guarantee scheme by RBS?