Army Reserve

Debate between Richard Bacon and Jim Shannon

Wednesday 2nd February 2022 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

First, I congratulate the hon. Member on bringing the debate forward. I concur and entirely support the figures to which he refers, because the figures that I have from within Northern Ireland indicate that the position is similar for us in Northern Ireland. I have been made aware of the proposed restructuring of our Army Reserve, medical units and infantry in Northern Ireland, leading to a 10% reduction in numbers. I declare an interest as a former reservist and part-time soldier for 14 and a half years.

Northern Ireland has a commitment to the reserves, an ability to recruit and a willingness to deploy. Indeed, Northern Ireland has contributed comparatively more to operations overseas than any other region. The reduction that the hon. Gentleman refers to is ludicrous. I fully understand the need to restructure and to meet up-to-date operational needs, but why throw away the willing volunteers that we have in Northern Ireland? I cannot understand where we are going.

[Mr Bacon]

I very much agree. The hon. Gentleman made the point that Northern Ireland has contributed disproportionately to the reserves. I should declare that when I did my final passing out camp in the intelligence corps, we shared our barracks with the Royal Irish Rangers; indeed, I passed out with a Royal Irish Rangers pipe band. I must say to anyone who has not experienced it that they should not knock it until they have tried it. There is nothing quite like marching in Army formation with an Irish pipe band. As he said, the Northern Irish have contributed hugely to the reserves and we are all in this House grateful to them for what they do.

Much worse than the actual cut in numbers is the way in which the cut is proposed, including the erosion of the already fragile structure of all our combat units, instead of simply closing a few. The essence of effective reserves, both for use in small operations and to form a basis for regenerating a larger army, is putting together a body of officers and soldiers who train, study and socialise together, building links of comradeship that can stand the test of combat.

Britain did that successfully in the two world wars and more recently in Iraq and in the early part of Operation Herrick in Afghanistan, where formed companies of infantry, and sub-units from other elements, were successfully deployed. Unfortunately, in the latter stages of Operation Herrick, that approach was torn up and reserve units were exclusively used to backfill regular ones—“augmentation”, as the Army calls it. That offered no command roles for junior reserve officers, just supporting posts.

The consequences were dire. The “Reserves in the Future Force 2020” report uncovered that the junior officer base of the Army had disintegrated, and applications for reserve Sandhurst courses collapsed. Putting that right and moving back towards formed bodies was at the heart of the rebuilding programme of the past decade. Indeed, in the past two years, we have seen a yeomanry squadron rotate successfully into Operation Cabrit in eastern Europe and two reserve infantry battalions, 6 and 7 Rifles, provide the framework for Operation Tosca in Cyprus.

That is why the widely discussed proposals for the cuts in the Army Reserve are so devastating. Instead of simply disbanding a few reserve units—perhaps from an area such as logistics where there is a successful record of using armed civilian contractors in Iraq and Afghanistan—I understand that the plan is to devastate every infantry battalion by reducing the manning in three company battalions to just 340 and in four company battalions to 430. Each company will consist of just two rifle platoons and a single section of support weapons, instead of a support platoon.

Besides the obvious point that this seems a very odd time to reduce our reserves of anti-tank weapons and mortars, that will leave each company much smaller and with no in-house staff for the residual support element. Given that nobody gets a full turnout, even when manning recovers from the devastation of covid, that would leave a sub-unit structure without the critical mass for company-level training. At battalion level, it will become impossible to generate a formed company for an extended deployment, as the proportion of even a well-recruited unit who can take many months off work in peacetime is inevitably limited.

That brings me to the state of the reserves recruiting programme. During covid, the collapse in activity was damaging to units, much of it, I suspect, concealed in the statistics by a failure to discharge non-attenders. So the decision largely to turn off the reserve pipeline for many months was ill judged, but, since it restarted last year, astonishingly, the marketing has been done without consultation or even co-ordination with reserve units, or with the reserve forces cadets associations with their local footprint and knowledge. The Minister will know that that has not produced the surge that the Army Reserve hoped for, and badly needs, after the setbacks of covid. I await the figures for the most recent quarter with some trepidation.

There is now a threat to the progress that has been made on reserve officer courses at Royal Military Academy Sandhurst. Three years ago, the post of deputy commandant reserves, which had played such a big part in the recovery of reserve officers, was abolished. Now, the decision has just been taken to sideline the reserve colonel at Sandhurst, to whom the various university officer training corps reported. The reserves depend on the OTCs for the bulk of their officer supply and much of their training, and almost all OTCs are commanded by regular officers. Now they will answer to a regular officer, too. So the senior reserve voice has been frozen out of that critical area for the health and regeneration of the Army Reserve. OTCs may become little more than recruiting organisations for the Regular Army.

Those concerns about manning are reinforced by a number of other emerging trends. At a time when covid and the recruiting pause have left such gaps, is it really a good time to suggest that, where units can recruit above strength and their neighbours cannot, they will be forbidden to do so? That would punish those who are successful, and make it a certainty that we will never recruit up to our new, further reduced target.

In a separate “Future Soldier” document, the reserve component narrative states at paragraph 3, line 4:

“An assured and capable Reserve will require a new approach to training, basing and force generation that sets the Army Reserve up for success. Reservists may not need to give more of their time; but making much better use of their time will be essential.”

That is exactly right, but let us look at the detail.

To take training first, many experienced reservists would say that the biggest waste of their time is the approach of many of the arms schools, which insist that reservists are trained at the same slow speed as regulars, despite reservists having a higher educational minimum standard and, crucially, needing to make progress in the short periods they can spare from civilian jobs. Some forward-leaning institutions, such as Chatham and Larkhill, have modularised, pushing out much of their courses to units and making use of distance learning. Others, such as Bovington and Leconfield, continue to insist on courses being almost all delivered on site and frequently at a very slow pace—a considerable problem for reservists whose day jobs and homes are far away.

What is being done to tackle those institutions that simply do not understand that reserves need to be prepared in a way that fits around their civilian work patterns?

Turning to basing, there are plans that elements of the reserve estate will be closed and that units will be grouped in larger, better centres. Although, in principle, this should improve some dire accommodation, we need to be cautious. Most journeys to training take place in the rush hour, so peak traffic journey times are critical in assessing the expectation that recruits with demanding day jobs will be willing to travel after a hard day’s work. This is particularly seen in threats to delete successful sub-units. Unless the alternative location is close, it will simply drive people away, further reducing manning.

Housing

Debate between Richard Bacon and Jim Shannon

Thursday 28th March 2019 Commons Chamber

[Mr Bacon]

Yes. I do not want to be building houses that we will be knocking down in 30 or 40 years’ time because they are so dreadful. That is utterly pointless. The hon. Lady mentioned building regulations. At the Local Authority Building Control conference, where I gave an address, I needed only to say the word “Persimmon” and people fell around laughing as if I was as funny as Tommy Cooper—perhaps there are people who think I am—because it is a byword for poor practice in the building industry.

I have heard the chief executives of volume house builders criticise Persimmon for its bad practice. We all know what happened to the sainted Jeff Fairburn. Because of his compensation scheme, he was being paid—I will say this slowly—£130 million in emoluments by the shareholders of Persimmon. So egregious a scandal was it that he got so sick of being followed round by someone from the BBC with a microphone asking him to justify it that he eventually resigned, which was a red letter day for many of us who are campaigning for higher quality. In a competitive environment where the company could not afford to pay one chief executive that much money, that money should have been going into larger spaces, better quality material and better thermal performance. There is a huge distortion.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing the debate. He and I have discussed on a number of occasions how houses should be built in the future. Modern house building should ensure better air quality, better insulation, better heating, better windows and better doors. It is also about the location—for example, the green areas around the house and access to shops. A house has to be a home. I declare an interest, as chair of the all-party parliamentary group for healthy homes and buildings. I know that the Minister and the hon. Gentleman have read the APPG’s report and are aware of its recommendations. Does he feel that those are a way forward for housing?

[Mr Bacon]

I do, and I am grateful to the hon. Gentleman for reminding me of that. There is a lot of evidence that if people live in better, more spacious, healthier homes, there are lower costs for the NHS and lower sickness rates; it is better for employees and employers. There are lots of other ancillary benefits of having better homes, as well as their being good in themselves.

I am keeping a close eye on the clock, Madam Deputy Speaker. I planned to start with a preamble, which I seem to be doing without too much trouble, and then get into the specifics of what I want to say to the Minister about the Right to Build Task Force, but I will say one or two more things before I do that.

The situation we face is one in which an entire generation have basically given up on the chance of either owning a property or even being able to afford to rent one. In general, and especially in the big cities like London, Birmingham and Manchester, people spend an absurd proportion of their income on rent. When it is costing people over 50% of their net monthly salary to rent a ghastly little bedsit where the mattress is hanging over the sink—I do not exaggerate; I saw such an example on a Channel 4 documentary a while ago—we obviously have a big problem.

I was at a dinner at the London School of Economics where a professor was talking about a graduate student of his who was about to start working in the Bank of England on a not inconsiderable salary, but he was going to be living at home with his mum. The chap from KPMG around the table said, “Well, that’s nothing. We start our graduates on £45,000, and they can’t afford to buy anywhere.” Then the chap from BlackRock said, “Well, that’s nothing. We start our graduates on £75,000, and they can’t afford to buy anywhere, certainly not within a decent distance of our office.” It has got completely out of sync, and the Government have to fix it.

There is, of course, a political problem for our own party. I will address that later, but it is perfectly obvious that if people cannot get somewhere to live at a price they can afford, they will not vote for a party that cannot provide that for them. We need a fundamental change. We have dug ourselves a big hole over the last 20 to 25 years, and it will take us 20 to 25 years to dig ourselves out of it. If we are not careful, we will be in the same position in 20 to 25 years, only worse, unless we have the right policy proposals for fixing it. That is what I want to come to.

When I came off the Public Accounts Committee in 2017, it was to spend time on the Right to Build Task Force, an initiative set up by the National Custom and Self Build Association to help local councils, developers, community groups and landowners who want to bring forward self-build and custom house building projects on serviced plots of land—that is to say, where all the difficult bits such as fresh water, sewage, electricity, broad- band and so on are already dealt with—in order to increase supply and give people more choice. That is what I have spent most of the last two years in this place doing.

Britain-Iran Relations

Debate between Richard Bacon and Jim Shannon

Wednesday 12th October 2016 Westminster Hall

[Mr Bacon]

No. There is persecution throughout the world. Many people think that abortion is a fundamental human right and that for a country to make it illegal is not normal. I happen to disagree with them, but the hon. Gentleman and the hon. Member for Strangford represent constituencies in which abortion is still illegal. I think that is a decision for local people to make locally, but what constitutes “normal” is actually a very wide spectrum.

The key point that needs to be understood is that after 9/11, while much of the middle east was yodelling in the street at the destruction of the twin towers and the murder of many thousands of people, including many Muslims, Iran flew its flags at half mast, held candlelit vigils and offered the United States strategic and logistical help in the fight against the Taliban, which was accepted,.

I hope the hon. Member for Strangford, as a serious religious man, will listen carefully to this: what is least understood about all these imbroglios, and indeed about what is going on in Syria, is that to the Taliban, al-Qaeda and now Daesh, the first enemy is not the west and not Christians but the Shi’a. It should come as no surprise to anyone that the Iranians are supporting the Shi’a in Syria, or that the Iranians were opposed to the Taliban who wanted to kill the Shi’a. It should come as no surprise that the Iranians were deeply opposed to al-Qaeda, which particularly attacks the Shi’a.

[Jim Shannon]

I do not disagree with the hon. Gentleman, but the point that my hon. Friend the Member for East Londonderry (Mr Campbell) and I are trying to make is that 108 Christians were arrested and imprisoned last year. That is hardly an indication of a Government that is open and inclusive of Christianity. Pastor Behnam Irani is serving a six-year prison sentence because he is a Christian who refused to accept the Muslim religion and wanted to preach to his people. That is an example of what is taking place.

[Mr Bacon]

Did the hon. Gentleman say 108?

[Jim Shannon]

Yes, 108.

[Mr Bacon]

That is exactly the same number of people who were beheaded in Saudi Arabia last year. I know that that is equally irrelevant, but let me just point out—[Interruption.]

Zero-hours Contracts

Debate between Richard Bacon and Jim Shannon

Wednesday 27th May 2015 Commons Chamber

[Mr Richard Bacon (South Norfolk) (Con)]

I am pleased to have the opportunity to introduce the first Adjournment debate of the new Parliament. It was a pleasure to follow the hon. Member for Swansea West (Geraint Davies). I would love to tell him that the Scottish National party Members were sitting in their places because of the rumour that he was the most exciting speaker in western Europe, and that the right hon. Member for Gordon (Alex Salmond) was there because he wanted to hear every word the hon. Gentleman had to say, but in fact I know that the right hon. Gentleman is sitting there with some of his colleagues because they want to hear what we on the Government Benches have to say about zero-hours contracts. It may seem unusual for a Conservative Member to be raising this subject, which was controversial at some point during the general election, but at a time when the Labour party is unable to focus on any subject at all, as evidenced by the number of Labour Members now in the Chamber, it is left to the governing party, the Conservative party, and what I think they would probably call the real Opposition to focus on the issues that are important to the nation, and zero-hours contracts is one of those issues.

The expression “zero-hours contracts” is a colloquial term for a contract of service under which a worker is not guaranteed work and is paid only for work carried out. It is fair to say that such contracts have attracted both criticism and praise. Employer organisations tend to stress the role that zero-hours contracts can play in helping businesses to meet fluctuating demand, and they argue that such contracts play a key role in keeping people in jobs. Trade union campaigners and others emphasise how the financial insecurity of those people who are on zero-hours contracts limits their ability to rent property or to access loans or mortgages, so that it becomes more difficult for them to provide for their families, and that the general uncertainty facing workers on zero-hours contracts is compounded because such people are not defined as employees, which means that they do not qualify for most employment rights.

The Office for National Statistics has examined the matter to estimate the number of people who have zero-hours contracts, and it is fair to say that there is a little blurring at the edges about the accurate numbers, depending on how they are counted. The ONS has collected statistics based on the labour force survey, which asks workers rather than employers about their employment arrangements, and this suggests that there may be about 697,000 people on zero-hours contracts. A survey by the Chartered Institute of Personnel and Development produced a rather higher number of about 1 million, but the ONS thinks that that may overstate the sampling of large employers. None the less, there is a small but significant proportion of the total workforce of 31 million people—perhaps between 2.2% and 3.2%—who are on zero-hours contracts.

The workplace employment relations survey estimated that the proportion of workplaces with at least some workers on zero-hours contracts has doubled from 4% in 2004 to 8% in 2011, and what is particularly significant is the concentration of workers on zero-hours contracts in certain sectors. The Financial Times reported in April 2013 that there were more than 100,000 zero-hours contracts in use across NHS hospitals, the number having risen by 24% over two years. In the hotel and catering sector, some 53% of employers make at least some use of these contracts, and it has been estimated that some 61% of workers in the domiciliary care sector are on zero-hours contracts.

A social entrepreneur, Mrs Sheila King, in my South Norfolk constituency has told me of the great value of zero-hours contracts for small charities. Mrs King conceived and developed the Pennoyer centre in Pulham St Mary in my constituency. The centre, which is run as a local village charity, is in a building which is part derelict Victorian primary school and part 14th-century medieval guild chapel, and which is now, with the help of grants Mrs King secured from the Heritage Lottery Fund and other grant-making bodies, a multi-purpose village centre. It serves as a conference centre, an IT training centre, a café, a restaurant, a village hall and, indeed, as a polling station in the recent general election, which I say with particular affection because it was where I cast my own vote.

Of the 13 people who work at the centre, four are on zero-hours contracts and they earn holiday pay for every hour worked. These workers include some women over the age of 60 who are happy to have a few hours’ work here and there, and some sixth formers working for their A-levels who at certain times, when they are studying, want to be able to say no to any work at all, whereas at other times they will tell the centre that they would like as many hours as possible. Mrs King told me that it would be difficult to run the centre without the flexibility offered by zero-hours contracts, which she said were “flexible on both sides”.

[Jim Shannon (Strangford) (DUP)]

Over the election period I had occasion to meet some people who were employed on zero-hours terms and their views were clear. The hon. Gentleman has given us a rosy picture of charities which use such contracts, but many people on zero-hours contracts are temporary agency workers who have no rights, as the hon. Gentleman said, and whose hours and pay are minimal. The companies employing them are successful and are making large profits. Is it not fair that those on minimal hour contracts should receive long-term contracts with better wages if the companies are making a large profit?

[Mr Bacon]

I agree that the picture is not all rosy. I started with the rosy news because I wanted to soften up my hon. Friend the Minister, but there are problems. That is why I applied for this debate. I will come on to some of those problems in a moment.

Mrs King told me:

“Just because it is not for everyone doesn’t mean it is wrong for everyone and that it is somehow toxic. Implemented legally and fairly, zero-hours contracts can be a brilliant way for small charities like ours to run more effectively.”

The whole issue of zero-hours contracts, as the hon. Gentleman said, featured in the general election campaign, particularly after the right hon. Member for Doncaster North (Edward Miliband), the former leader of the Labour party, said that the Labour party, if returned, would abolish zero-hours contracts, although the manifesto does not say that. It does not call for the complete abolition of zero-hours contracts. It says:

“Labour will ban exploitative zero-hours contracts.”

The hon. Member for Streatham (Mr Umunna), who was for a few minutes a candidate to succeed as leader of the Labour party, was quite explicit when he told the Labour party conference that Labour

“will act to outlaw zero hours contracts where they exploit people.”

Meanwhile, the Conservative manifesto promised to

“take further steps to eradicate abuses of workers, such as non-payment of the Minimum Wage, exclusivity in zero-hours contracts and exploitation of migrant workers.”

I am pleased that the new Government are now in a position to follow through on these commitments.

With reference to the comments from the hon. Member for Strangford (Jim Shannon), what struck me about the issue during the general election was how frequently voters mentioned it to me, unprompted, often while talking about their grown-up children entering the workforce, which suggests that it may be a bigger issue than the statistics suggest. In one election debate in a church, a member of the audience explained how his son travelled to Norwich each day to work in a retail outlet. When he got there at 9 o’clock in the morning he was told to go and sit in a store room at the back. Later in the morning, if it got busy, he would be called out on to the shop floor, for which he would be paid. He would then be ordered back to the store room to wait for his next slice of paid work later in the day.

I do not know anybody who would defend such arrangements. They are indefensible and, by the way, they are almost certainly illegal already, because the law states that “time workers” must be paid at least the national minimum wage when they are on standby at or near the place of work and are required to be available. I do not want to get this out of proportion. It is not a universal problem. Indeed, I met a young man earlier this week who was delighted with the flexibility that his zero-hours contract gives him, but who also said to me, “What you cannot do is take someone’s time and then not pay them for it.”

European Pig Industry

Debate between Richard Bacon and Jim Shannon

Wednesday 30th January 2013 Commons Chamber

[Mr Bacon]

My hon. Friend is absolutely right. In this country, once the rules come into force on a given date—1 January 2013, in this instance—that should be it. There is a huge difference between our approach to the law, what we do with it and how we obey it, and the approach of many countries on the continent, where law and the making of law are more of an aspiration than a statement of what is and how things should be. I do not want to dwell on that point too much, because it is outside the terms of the debate, but I think that it highlights one of the fundamental differences between us and many European countries, which makes the melding of our countries—should we wish it, which we do not—almost impossible.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing this very important issue before the House. My constituency used to have 30 pig producers, but we now have just one, although it is a large one. The problem has been that we in the UK have religiously followed the regulations, to the detriment of local pig farmers. Does the hon. Gentleman agree that the supermarket chains should give a commitment to sourcing pork from local farmers, rather than buying from across the rest of Europe?

[Mr Bacon]

Yes, that is important, and the evidence is that where supermarkets—such as Waitrose and Morrisons —have made such a commitment, it has had very favourable consequences and customers like it.

As a result of 80% of EU member states not being expected to meet the deadline, many illegal farms are likely to operate well into 2013. Only five nations—the United Kingdom, Austria, Estonia, Luxembourg and Sweden—achieved full compliance with the directive by the 1 January 2013 deadline.

As the Minister will know, at the Council of Ministers meeting on Monday of this week, fresh figures on the extent of compliance with the directive were provided. The latest data from Agra Facts revealed that an additional five member states—Bulgaria, Latvia, Lithuania, Slovakia and Romania—are now fully compliant, taking the total number of compliant countries to 10. It is interesting that some countries that might have faced more difficulties and that are less economically developed have been able to achieve full compliance, while other countries, such as France and Germany, have not. That speaks volumes about why compliance has not been achieved. The reality is that it has not been achieved because it was not in those countries’ interests to achieve compliance, as they can get more profit by flouting the law, and they have done that up to, and beyond, the last possible moment.

Many of these countries export to the UK in significant volumes, including Denmark, the Netherlands and the EU’s largest pork producer, Germany. To take Germany as an example, one quarter of the EU’s pigmeat—some 5.6 million tonnes—is produced by German pig farmers. Recent Eurostat figures show that Germany has 27.4 million pigs, over six times the number of pigs in the UK, and 18.5% of the overall EU pig herd. The website for German Meat, the joint export promotion organisation of the German meat industry, proudly proclaims:

“The production of pork has a long tradition in Germany. Production methods and structures today are of a high standard and undergo constant further development in terms of animal genetics, animal health, production technology and hygiene.”

However, the December 2012 figures for compliance show that fewer than half of Germany’s pig farmers—just 48%—had achieved full compliance with the directive. That figure now stands at 73%—so still more than a quarter are not compliant—and both figures place Germany at 24th place out of 27 member states in terms of the percentage of pig farms in full compliance.

In December, four member states had compliance rates of below 50%: Germany, Portugal, Belgium and France. Together, they produced 49.7 million tonnes of pork and pigmeat. By contrast, the five countries that were fully compliant by December 2012 produced 9.4 million tonnes. These figures help to illustrate the scale of the challenge. Europe is awash with cheap pork produced illegally, forcing down the price of pork and other pig products and adding yet more pressure on Britain’s already hard-pressed pig farmers, who are complying with the law, unlike many of their major competitors.

Group Lotus

Debate between Richard Bacon and Jim Shannon

Tuesday 24th April 2012 Commons Chamber

[Mr Richard Bacon (South Norfolk) (Con)]

I am very grateful for the opportunity to draw the attention of the House to the situation currently facing Group Lotus, the largest employer in my South Norfolk constituency, and the potential threat to 1,200 local jobs. I am very pleased to see parliamentary colleagues here from Norfolk and I have received messages from my hon. Friends the Members for North West Norfolk (Mr Bellingham) and for North Norfolk (Norman Lamb), both of whom would have wanted be here in their capacity as local Norfolk MPs, but who are both sadly overseas on Government business.

Group Lotus is a local and a national icon. It is a famous sports car manufacturer with a very special heritage, and also an important global engineering consultancy. The central concern is that following the Malaysian Government’s recent sale of its stake in Proton Holdings—a Malaysian company that is the owner of Group Lotus—to another Malaysian company, DRB-HICOM, the new owner may respond to what are said to be a number of Chinese businesses that would like to buy Lotus and relocate the manufacturing to China.

The CEO, Dany Bahar, has stated publicly in a recent interview that it would “make no sense” to move manufacturing. However, he also stated the exact opposite at the Paris motor show in October 2010 and at the Los Angeles motor show in November 2010, when it was stated that production would shift abroad and that a new factory site would be decided on before Christmas. One Chinese business, China Youngman, has had a commercial relationship with Lotus for many years.  The great fear in South Norfolk is that there will be a repeat of the MG Rover saga when the remnants of a once great British car company were picked up from the scrap heap and put on a boat to China.

It is worth setting out why Lotus is so important and why its continued presence in the UK is so important. The company was founded in 1952 by Colin Chapman, a legendary designer and inventor who, it is probably no exaggeration to say, was an engineering genius. At the heart of Chapman’s philosophy for automotive design was his famous maxim, “Simplify, then add lightness.” His approach was driven by the belief that while adding power made a vehicle faster on the straights, subtracting  weight made it faster everywhere,  and so he focused on lightness and fine handling rather than on huge horsepower. To this day, Lotus is well known across the world for its unparalleled understanding of drive dynamics.

Lotus has made so many contributions to the history of automotive engineering which are still influential—and in many cases in use today in one form or another—that it is not possible to do justice to all of them in this short debate, although they include the first ever use in a Formula 1 car of a reclining driving position;  a monocoque chassis design; aerofoil wings; a wedge-shaped front; adjustable suspension; and many other important innovations. This approach was rewarded with seven Formula 1 constructors championships and six drivers championships, and Lotus’s cars have twice appeared in James Bond films, notably in “The Spy Who Loved Me”, when a Lotus Esprit memorably transformed into a submarine.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman says that there is a lot of Chinese interest. I also understand there is interest from the Formula 1 Lotus team in taking over the firm and protecting every one of those jobs. Does he agree that its bid should be the one that is chosen?

[Mr Bacon]

I certainly agree that it should be given the most serious consideration. I understand that the owners of Lotus F1, which by the way came second and third in the recent Bahrain grand prix, have expressed an interest and said that they would see no reason to move any of the business away from the UK. Their views should be treated with the greatest care and consideration.

The production side of the business has been doing very well and has built tens of thousands of relatively affordable and cutting-edge sports cars, employing many local people in the process. The consulting side has been so successful over the years that it is said that one in 10 cars in Europe has something in it that derives from Lotus’s intellectual property.

Lotus moved in 1966 to Hethel in South Norfolk to a purpose-built facility on the site of a former US air force airfield. The business now employs around 1,400 worldwide, some 1,200 of whom work at the Hethel headquarters.  In 1996, Lotus was bought by Proton Holdings, a Malaysian car manufacturer. Lotus has experienced financial difficulties at times, but it was profitable as recently as 2008-09, when the Group Lotus annual accounts show a profit before tax of £1.5 million.    It is important to emphasise this point as one will find many incorrect references in the automotive press to the “fact” that Group Lotus has never made a profit since it was bought by Proton, when the actual facts are that the company has been profitable quite recently. Lotus has a great story to tell and is at the heart of an innovation cluster. The recent and growing success of the Hethel engineering centre in nurturing a variety of high-tech small businesses has been due, in large measure, to the presence of Lotus nearby. There are also wider benefits along the A11 corridor that my hon. Friend the Member for Mid Norfolk (George Freeman) will address if he catches your eye, Mr Speaker.

If Lotus were removed, it would be a body blow to the growing success of a local economy that is succeeding precisely as part of the shift away from the overdependence on financial services that the Government wish to see.

Higher Education (Student Visas)

Debate between Richard Bacon and Jim Shannon

Tuesday 8th February 2011 Commons Chamber

[Mr Bacon]

I was particularly interested to hear Sir Andrew Green of Migrationwatch UK, who I have always thought is a very articulate spokesman on these matters, say that he was interested in bogus students, bogus applicants, bogus colleges and genuine students who overstayed, because those categories contribute to net migration, but that he would welcome more genuine overseas students, as he thinks that is good for the country and the economy.

My fear is that genuine overseas students have been caught up in all this, so let me say how pleased I am that the Government have taken steps to deal with bogus colleges. The Select Committee on Home Affairs produced a useful report on that issue in 2009 and I gather from the Minister’s evidence to the Committee today that some 58 colleges have had their status revoked and the Government have taken compliance action against a further 235, which may lead to suspension or revocation of status. I applaud those excellent and worthwhile moves. Nobody has a stronger interest in seeing bogus colleges put out of business than legitimate providers. I should add that the Committee’s previous recommendation to restrict by law the use of the word “college” is a good one that Ministers should take seriously.

There is no place for bogus colleges or bogus applicants; nor is there any place for genuine applicants who overstay. We should have clear rules that everyone understands and that are enforced. If we deal with the bogus colleges, the cheats, the bogus applicants and those who fiddle the system, a great deal of the heat—the political problem about immigration—goes away. At that point, we face chiefly not a political problem, but a much more entrenched and difficult economic problem. We are all living through the consequences of the worst financial crash for a century or more. We know that this will be very painful and that severe belt-tightening will take place, and we have seen the Government make a start on that. We all know that any Government would have had to do the same. We know that we have to rebalance the economy away from its heavy dependence on financial services and have much healthier growth in other sectors.

We know that in Norfolk as well as anywhere does in the UK, because Norfolk is poised for significant growth in other areas of the economy, particularly once we get the dualling of the A11 completed, which I am pleased the Government have agreed. Norfolk is poised to help that rebalancing and not only through tourism, agriculture and high value-added food production, in which East Anglia has excelled, because there is a broader potential for growth. For example, Norwich is home to a cluster of internationally renowned research organisations in health and life sciences.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Gentleman agree that for a great many universities across the United Kingdom—particularly Queen’s university in Belfast—students on visas are very important to research and development and to contact with companies? That potential needs to be realised. Does he feel that the coalition Government can make changes to ensure that the students who have the right to be in this country can make a contribution to universities and, thus, secure development?

[Mr Bacon]

I certainly hope so. I hope that the Government understand, if they had not already, that two in five PhDs undertaken in this country are undertaken by overseas students. Damage that and we damage the research base of this country.

More than 2,500 scientists are working at the John Innes centre near Norwich, the Institute of Food Research, the Sainsbury Laboratory, the Genome Analysis Centre and the university of East Anglia cluster, which together form the Norwich research park. That is the largest concentration of food and plant scientists in Europe. The IFR was recently ranked in the top two of 36,000 worldwide research organisations for the influence and citation of its research.

UEA also has a growing medical school and a renowned school of environmental studies. Other growing sectors include offshore and other renewable energy, including tidal, biomass and biofuel energy production. In advanced engineering the area has more than 1,000 engineering companies, employing a skilled work force of about 10,000 people, which trade around the world with the likes of Boeing, Airbus, NASA and Toyota. Group Lotus, which is based in my constituency, is developing the next generation of high-performance cars using renewable energies, as well as being the catalyst for a large cluster of advanced automotive engineering businesses along the A11 corridor. Almost every Formula 1 team is supported by engineers based in Norfolk or is using engineering invented in the county.