Oral Answers to Questions

Lord Harrington of Watford Excerpts

Tuesday 17th July 2018 Commons Chamber

[John Spellar (Warley) (Lab)]

5. What recent discussions he has had with trade union representatives on the future of the British motor sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

On 25 June, I met Unite the union to discuss its views on how Government can best support the UK automotive sector. I met Tony Burke and representatives from the Jaguar Land Rover, Toyota and GKN unions. The Secretary of State and I also speak to the unions regularly through their membership of the Automotive Council.

[John Spellar]

I thank the Minister for having that meeting, because under Conservative, Labour and even Lib Dem Ministers, Britain rebuilt its motor industry by working closely with industry and the unions. Unfortunately, more recently, ill-considered lurches in policy by the Department for Transport, which are less like the prosperity agenda and the industrial strategy and more like Soviet 10-year plans, are creating deep uncertainty, especially for the diesel sector, where Britain is a world leader. What will the Minister now be doing with unions and companies to get our motor industry policy, across Government, back on track?

[Richard Harrington]

The Government’s “Road to Zero” strategy, which was published last week, made it clear that there is a continuing role for clean diesel vehicles as we reduce carbon dioxide emissions from UK road transport. It has been generally welcomed by the automotive industry.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

We have seen tremendous investment in the motor industry over the years, not least in Toyota in Derbyshire. What are the Government doing to encourage more investment?

[Richard Harrington]

My right hon. Friend will be very aware of the number of meetings we have with the automotive industry and of how closely we are working with it on the sector deal. The Automotive Council met only in the past couple of weeks, and that was one of the top things on the agenda for discussion.

[Mr Jim Cunningham (Coventry South) (Lab)]

Some 53% of our exports rely on Europe. What are you doing to protect that market for us?

[Mr Speaker]

I am doing absolutely nothing on the matter.

[Richard Harrington]

I hope the hon. Gentleman has read the Chequers agreement and the White Paper. I will be very happy to forward him a copy. It explains how the views and interests of the motor industry are central to how the sector works throughout all countries in the European Union, including us. We will continue in a friction-free way that is very much to the advantage of the automotive industry.

[Jack Dromey (Birmingham, Erdington) (Lab)]

The success of Jaguar Land Rover and the Jaguar plant in my constituency has transformed the lives of thousands in an area of high unemployment. Now JLR is facing the twin challenge of the transition from diesel on the one hand and the threat of Brexit on the other. Does the Minister agree that wide-eyed Brexiteers appear to believe that we can crash out of the European Union with no consequences for jobs, that they are wrong and they are letting down British workers, British industry and Britain?

[Richard Harrington]

I hope the hon. Gentleman does not think my eyes are too wide. Despite your efforts last week, Mr Speaker, there seems to be a shortage of Members on both sides of the Chamber who have actually read the White Paper. I would be very happy to give one to him.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Moving to electric vehicles should be transformative for our country and our £77 billion car sector, creating new markets and jobs in manufacturing, services, the supply chain and battery recycling. What are the Government doing? Their Faraday challenge does not cover manufacturing or skills, they have ditched renewable energy investment, delayed the £400 million investment in charging infrastructure and allowed the takeover of GKN’s world-leading battery technology, and yesterday they voted for a customs plan that will sever automotive supply chains, putting more than 800,000 jobs at risk. Is it not the Government’s role to help create high-skilled, high-productivity jobs, not destroy them?

[Richard Harrington]

I totally agree with the hon. Lady: it is the Government’s role to do exactly that. That is why we have the Faraday battery challenge, which covers skills, and why the Government are putting so much effort into battery technology and clean technology for this country. I am very proud of that. I have seen skills in the automotive industry when I have visited car factories and the schools around them. The number of apprenticeships shows that the Government are totally committed to skills. We have a very bright future with batteries.

[Mike Wood (Dudley South) (Con)]

6. What steps he is taking to ensure that low-paid workers are remunerated appropriately.

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[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

8. What steps the Government is taking to ensure that Scotland benefits from the modern industrial strategy.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

I am pleased to assure my hon. Friend that our modern industrial strategy continues to deliver strongly for Scotland. The progress in negotiations for a growth deal with Ayrshire demonstrates our commitment to regional growth. Investment in Scotland through the industrial strategy challenge fund includes last month’s £13 million for a medicines manufacturing innovation centre in Renfrewshire.

[Bill Grant]

I thank the Minister for that reply. In November 2017, the Secretary of State announced a review into how Scotland’s two Governments can collaborate better on business support. Will he update the House on the progress of that review, and will he reassure me that he will strive to ensure that the industrial strategy and the Scottish Government’s business support programmes complement, rather than compete, with each other?

[Richard Harrington]

I am very pleased to reassure my hon. Friend, who works so hard on this subject, that we continue to work closely with the Scottish Government on many industrial strategy priorities, including our support for innovation and business productivity. Regarding the review, work is under way across government to determine its scope. Clearly, our partnership with the Scottish Government will be essential as that progresses.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Scrapped subsidies for renewables, failure to support the oil and gas sector in its time of need, betrayal over the pledge to invest £1 billion in new carbon capture in Peterhead—now, the Government are seemingly poised to splash £15 billion more of taxpayers’ cash on outdated nuclear technology at Hitachi’s Wylfa plant. When will we get an industrial strategy that actually works for Scotland?

[Richard Harrington]

That is not the picture of the oil and gas industry that I know following a visit to Aberdeen, where I saw more investment, more Government support and more support in the area for this Government’s industrial strategy. I am a great admirer of the hon. Gentleman normally, but I think he must have read the wrong script for this question.

[Craig Tracey (North Warwickshire) (Con)]

9. What steps he is taking to support growth in the small business sector.

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[Kevin Foster (Torbay) (Con)]

20. What steps he is taking to support growth in the small business sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

Corporation tax rates will be cut from 19% to 17% in 2020. We have doubled the annual allowance for people investing in knowledge-intensive companies through the enterprise investment scheme, and we are investing over £26 million through Be the Business. The Government’s British Business Bank is supporting over 70,000 smaller businesses to access £4.6 billion of finance.

[Craig Tracey]

Thirty-three jobs have been created and supported in my constituency through the small business loans platform, Funding Circle. What more can we do to encourage small businesses, particularly those that are female-owned, to look at wider ranges of finance options to help them to grow?

[Richard Harrington]

We want to ensure that all businesses get to know how to use the finance they need, including our 1.2 million women-owned businesses. Alongside the online finance finder and the business bank’s finance guide, the business bank is working with partners to understand the representation of women in venture capital firms.

[Scott Mann]

Some small businesses in Cornwall have seen increases in their business rates. This is against a platform of increased online sales. What discussions is the Department having with the Treasury to ensure fairness in our taxation system?

[Richard Harrington]

I thank my hon. Friend for that question. Some people would argue that Ministers engage with the Treasury too often on many matters, but we engage with them regularly on this matter. The Chancellor has been clear that we need to find a better way to tax the digital economy. We are making progress on that before considering the implications for the wider tax system, including business rates.

[Kevin Foster]

Small businesses in Torbay could benefit significantly from a coastal enterprise zone, as part of a town deal for our area. What view does the Minister take of this type of arrangement?

[Richard Harrington]

I thank my hon. Friend for all the work he has done for Torbay businesses. I understand that the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), who has responsibility for local growth, recently had a positive meeting with him and representatives from Torbay to discuss their proposals for local economic growth. I encourage Torbay to continue to work with local partners as it develops its plans, including the Heart of the South West local enterprise partnership, which will play a central role in the local industrial strategy for the area.

[Ruth George (High Peak) (Lab)]

Evidence to the Work and Pensions Committee on the operation of the minimum income floor for small businesses under universal credit stated that the percentage of small businesses surviving the first 15 months would fall from 70% to less than 20%. What representations has the Department had with the Department for Work and Pensions to support the growth of enterprise and small businesses?

[Richard Harrington]

We have many and regular meetings at all levels with the Department for Work and Pensions on that subject, but the hon. Lady is right: starting small businesses is very difficult and it always has been. Some of them survive and some do not, and some go on to be extremely successful larger businesses. She is right to be concerned about the amount of support that government, local and national, give them, and I can assure her that it is at the top of our agenda.

[Rachael Maskell (York Central) (Lab/Co-op)]

There may be a lot of discussion between the Department for Business, Energy and Industrial Strategy and the Treasury, but the reality is that there is no action on business rates. Our retail sector is closing down and 200,000 businesses have been taken to the magistrates court for non-payment, so when will we have a review of business rates and when will we see change?

[Richard Harrington]

I think that the hon. Lady is misinformed. There has been significant help for small businesses on business rates in previous Budgets and this is being looked at all the time.

[Ronnie Cowan (Inverclyde) (SNP)]

The Scottish Government Budget provided £96 million to deliver the most attractive business rates package in the UK. How long do firms and entrepreneurs have to wait till the UK Government use their industrial strategy, put their money where their mouth is and follow Scotland’s lead?

[Richard Harrington]

The UK Government really do not need to take very many lessons from Scotland on how to help businesses with business rates and every other form of business support. Actually, the working relationship between the two Governments is pretty good and we aim to provide a good business environment for all businesses on both sides of the border.

[Adam Afriyie (Windsor) (Con)]

10. How much funding his Department has provided to the UK science base in the last 12 months.

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[Peter Aldous (Waveney) (Con)]

T2. With the construction sector deal setting out several options to tackle poor payment practices, can the Secretary of State assure me that retention deposit schemes, as proposed in my private Member’s Bill, which has significant industry and cross-party support, will be given full consideration and, hopefully, Government backing?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

I have met my hon. Friend to discuss his Bill, and we fully understand that the practice of retention has caused problems for the construction industry supply chain. We are fully committed to tackling the issue, but any action we take needs to be robust, proportionate and evidence-based. We have listened and consulted, and we will shortly be publishing the response to a public consultation considering several options including a retention deposit scheme.

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

UK steelmakers are paying up to 50% more for their electricity than their European counterparts, which is reducing their competitiveness on the global stage. Ofgem’s targeted charging review is set to exacerbate the situation. What representation has the Minister made to Ofgem regarding its review and the effect of that review on both the steel sector and energy-intensive industries in the UK?

[Richard Harrington]

We meet Ofgem very regularly to discuss this and other matters, and we are very aware of the situation. As the hon. Lady knows, I have met many companies in the steel industry and discussed this, and it is very much part of our discussions with Ofgem and others.

[Sir Edward Leigh Gainsborough) (Con)]

T3. Last night the House of Commons voted to enshrine it in law that if under a facilitated customs arrangement we collect tariffs on behalf of the EU, that should be done on a reciprocal basis. Is it really practical to expect a Croatian border guard to start levying tariffs on our behalf on bottles of wine? Is there the remotest chance that the EU will ever agree to this reciprocal arrangement? Is it not time to return to a free trade deal?

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[Mr Steve Reed (Croydon North) (Lab/Co-op)]

T7. A survey of London businesses by London Councils and the London chamber of commerce has found that a third of apprenticeship levy payers do not expect to use any of their funds over the next 12 months. Does the Minister agree with the all-party parliamentary group on London that unspent funds should be devolved and used to support job skills in London rather than being returned to the Treasury?

[Richard Harrington]

I can assure the hon. Gentleman that we are having regular meetings with all the business representative bodies and the Department for Education to ensure that levy funds are spent properly, for the purpose for which they are meant and in local areas by the companies that pay the levy.

[Martin Vickers (Cleethorpes) (Con)]

The Secretary of State referred earlier to the visit of his colleague, the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), to north-east Lincolnshire to sign the Greater Grimsby town deal, which is very welcome and I thank him for his support in achieving that. One of the things that his colleague will have seen is the great opportunity to develop trade through the Humber ports. The Humber local enterprise partnership, the local authority, the Hull and Humber chamber of commerce and local businesses have been working towards the possibility of free port status, post Brexit. Can the Minister assure them that nothing that comes out of the negotiations will prevent that from happening?

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[Martin Whitfield (East Lothian) (Lab)]

Will the Minister confirm support for the Civil Nuclear Police Federation in its meeting this summer with his Cabinet colleagues over the proposals to reduce retirement and pension ages for armed officers from 67 to 68 down to 60 to match those of the police?

[Richard Harrington]

I can confirm that I have been in discussions with the CNPF. I have met the chief constable and the chairman, and I visited the civil nuclear police on site at Sellafield. I am well aware of the issue, and I am in discussions with colleagues at the Treasury and elsewhere.

[Several hon. Members rose—]