Oral Answers to Questions
Sam Gyimah Excerpts(5 years, 6 months ago)
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Kevin Foster (Torbay) (Con)
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
We are making the UK the best place to start and grow a business and a global draw for investors: for example, Green GB Week showcases fantastic opportunities in clean growth for businesses, as put forward in our industrial strategy. We have put in place the building blocks to drive £20 billion of investment into high-growth potential businesses and to support long-term investment across the UK.
Kevin Foster
I thank the Minister for his answer. Town deals are a welcome part of the industrial strategy. Yesterday, a delegation from Torbay Together met the Minister in the other place to discuss how a town deal for Torbay would make our bay the best place to grow and start a business. What view does the Minister take of how such a deal for Torbay would help to deliver this objective of the industrial strategy?
Mr Gyimah
I am aware of the ambitions in Torbay and I am encouraged to see the high-level commitment from the Torbay Together partnership. I encourage Torbay Together to continue its engagement with the Heart of the South West local enterprise partnership to ensure that the forthcoming local industrial strategy reflects the potential for the local area, and I commend its strategy.
Justin Madders (Ellesmere Port and Neston) (Lab)
UK shipbuilding is vital to the industrial strategy and our long-term economic success. When he visited Cammell Laird last year, the northern powerhouse Minister—the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Rossendale and Darwen (Jake Berry)—said:
“The future of this yard is absolutely crucial to the future of Birkenhead and Liverpool and I will do all I can to support them.”
Since the decision was made last week to cut more than 290 high-skilled jobs—40% of the entire workforce—the silence from the Government has been deafening. What will the Government do to defend jobs in this vital industry?
Mr Gyimah
The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Watford (Richard Harrington), met and spoke to Cammell Laird last night. It has finished one contract and a number of other contracts are on the way. It has also received £150 million for projects that it is engaging in and the Minister will be delighted to meet the hon. Gentleman to update him.
Several hon. Members rose—
Jack Brereton (Stoke-on-Trent South) (Con)
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
Research and development plays a vital role in improving productivity and helping us to expand our global opportunities. The Government are investing an additional £7 billion in R&D funding by 2022—this is the biggest increase in public funding. Our ambition is also to increase total R&D spend to 2.4% of our GDP by 2027, and 3% in the long term.
Jack Brereton
I thank the Minister for his response. Does he agree that the development of an advanced ceramics research park in Stoke-on-Trent would be a significant addition to the UK’s R&D capabilities?
Mr Gyimah
My hon. Friend is absolutely right. I understand that my colleague, the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Watford (Richard Harrington), is meeting with him and leaders from the ceramics sector on 24 October regarding its proposal for future investment. I wish them all the best.
Chris Elmore (Ogmore) (Lab)
The Minister may be aware that there is a need for more research and development funding for geothermal energy projects, which I have previously raised with the Energy Minister. Will he set out what additional funding he will give to get more projects in line, such as the one in Caerau in my constituency?
Mr Gyimah
I commend the hon. Gentleman on what has been done so far. As I said, a record increase of funding is available for research and development, mainly through UK Research and Innovation. We also have the industrial strategy challenge fund, but in all that, we are looking for projects that are cost-effective and if those become available, we will be happy to fund them.
Trudy Harrison (Copeland) (Con)
Julian Sturdy (York Outer) (Con)
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
Realising the full economic and social benefits of the excellent research at our universities is at the heart of our industrial strategy. Through United Kingdom Research and Innovation, our industrial strategy challenge fund and the higher education innovation fund, excellent research can be commercialised and translated into businesses that create jobs and growth.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
Only last week, the publicly owned Post Office announced the closure of a further 74 Crown post offices. Although the Post Office has not disclosed all its spending for its franchising programme, the Communication Workers Union estimates that up to £30 million of public money will be spent on compromise agreements, with staff being paid to leave, as customers, local high streets and the jobs market suffer. Does the Secretary of State agree that the Post Office must be transparent about how much its franchising programme is costing the public purse?
Wes Streeting (Ilford North) (Lab)
Mr Gyimah
The hon. Gentleman will be aware that the Government are considering the Migration Advisory Committee proposals in full, but there is no cap on international students coming to study in this country. The university sector is one of the most successful sectors in this country and this Government will make sure we continue to support it.
Dame Caroline Spelman (Meriden) (Con)
Given that the new generation of diesel engines are up to 90% cleaner, what can the Secretary of State do to help ensure that consumers are not penalised unfairly by vehicle excise duty and company car tax bands?
Peter Kyle (Hove) (Lab)
The UK is at the top of the global league for start-ups, but it is languishing at the bottom for scale-up. Is it not true that this is a black hole in the industrial strategy, because that is where productivity gains could be made? Why is the Secretary of State not acting on this?
Student Loan Book: Sale
Sam Gyimah Excerpts(5 years, 6 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Angela Rayner (Ashton-under-Lyne) (Lab)
(Urgent Question): To ask the Secretary of State for Education if he will make a statement on the sale of the student loan book?
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
I want to explain to the House the rationale for the sale of the student loan book and make some important points. The sale will categorically not result in private investors setting the terms or operating the collection of repayments. Loans in scope will continue to be serviced by Her Majesty’s Revenue and Customs and the Student Loans Company on the same basis as equivalent unsold loans. Investors will have no right to change any of the current loan arrangements or to directly contact borrowers. Furthermore, the Government’s policies on student finance and higher education are not being altered by the sale. These older loans, the borrowers of which benefited from lower tuition fees and lower interest rates, are not in the scope of the current review of post-18 education and funding.
The sale represents an opportunity for the Government to guarantee money up front today, rather than fluctuating and uncertain payments over a longer period. That will allow the Government to invest in other policies with greater economic and social returns. We will proceed with the sale only if market conditions remain favourable and if the final value-for-money assessment is positive.
Angela Rayner
I thank you, Mr Speaker, for granting this urgent question, and I thank the Minister for turning up today. It is a shame that the Secretary of State is too busy talking about Labour’s policies to come to this House to explain his own, because the Government last night snuck out a plan to sell another £4 billion of the student loan book, but they have once again told us nothing about their proposal. Will the Minister therefore tell us his Department’s valuation of the loans that it is planning to sell? What value does the Treasury’s Green Book place on them?
Does the Minister acknowledge that the National Audit Office found that his Department made a loss of £900 million on the previous student loan book sale and that £600 million in future income was lost? The sale was supposed to be subject to a so-called value-for-money test, so will he commit to publish the details of the test so that the House can scrutinise them? The Government have previously said that they will raise £12 billion by privatising student debt, so will the Minister tell us whether that is still their plan and state the total value of loans they are planning to sell? How was the figure of £12 billion reached?
Will the Minister confirm that when the sales go ahead the Government will lose a source of income for as long as 25 years in exchange for a one-off payment? Can he give us any justification for the policy of selling off an asset to flatter this Government’s terrible position on national debt? With nearly £1 billion lost in the previous sale, just how low would the sale price have to go before the Government decided that selling simply was not worth it? In short, how much public money do we have to lose before Education Ministers start learning their own lessons?
Mr Gyimah
I object to the hon. Lady’s point that the loan sales plan was snuck out under the radar. The proposal was set out in a written ministerial statement for the House to see, which is obviously why the Opposition spokesperson is in a position to ask an urgent question today. Student loan sales in this country have happened over nearly two decades. This is not new, and it started with two sales of mortgage-style loans under the previous Labour Government in the late 1990s. It was that Labour Administration in 2008 that passed the enabling legislation for the current sales. As I have said, the sale will not affect borrowers, who will continue to deal with the Student Loans Company.
The National Audit Office did refer to the write-down of the loan book, but anybody who has studied accounting will know that the present value of a future income stream will be lower than the value if one waited 30 years. In capturing some of that money, the Government can invest in vital public services today, and that is the rationale for selling the student loan book—the previous Labour Government saw that rationale as well.
The sale will also be good for the taxpayer. Once people have been to university, it serves no public purpose to have the money tied up. The sale will release that money to invest in other priorities. On the valuation, the face value of the sale is £3.9 billion, but what we will do and how we will look to proceed will ultimately depend on market conditions.
Mr Philip Hollobone (Kettering) (Con)
What is the Minister’s range of estimates for how much money the sale might raise, and will he confirm to the House that any money raised will be reinvested in other public services?
Mr Gyimah
My hon. Friend will be aware that money raised from student loan sales goes to the Treasury, which makes a decision about in which public services to invest that money. This ultimately means that the taxpayer gets some of the reward now, rather than having to wait for 25 years. We are working with professionals on the range of estimates and I am happy to share it with my hon. Friend when we have the answer.
Martyn Day (Linlithgow and East Falkirk) (SNP)
This policy highlights the limitations of how this Government assess value for money and measure the cost of student loans over time. It prompts the question which Department has it right: the Department for Education or HM Treasury. This is clearly another example of the UK Government selling off assets for short-term capital gain. Will the Minister confirm how much of the student loan book he intends to sell off? What assurances can the UK Government give that the selling off of the remaining tranches of the student loan book will achieve long-term benefit for the taxpayers? And why are the UK Government devaluing assets and selling them off for less than they are actually worth?
Mr Gyimah
The sale remains subject to market conditions and a value-for-money assessment, but I will not be taking lessons from the Scottish National party on student finance. The SNP has created a system that actively works against the disadvantaged in Scotland. We have a system that is funding our universities well and helping the disadvantaged.
Bob Blackman (Harrow East) (Con)
I thank my hon. Friend for his answers. Can he give me and my constituents, either students or borrowers, an assurance that whoever buys this loan book will have no access to personal data and no contact or involvement in setting the rates for the loans?
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Minister must know that those in the financial services sector—the sort of people who buy these loan books—are the least trusted people in this country. Is it not a fact that there are hundreds of thousands, if not millions, of former students out there with some £50,000 of personal debt who are extremely worried about what will happen to the debt sold to these unscrupulous people?
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The Minister seems to be saying that he is selling off the student loan book to invest in the public services that his Government have slashed. Given that it is the end of austerity, should it not be possible to invest in those public services without privatising the financing of our higher education and the debt of so many students?
Mr Gyimah
All the Government are doing is trying to capture an income stream that we will get over 25 to 30 years. This is money due to the Government and the Government are coming to a financial arrangement that allows the money to be captured today. As the last Labour Government saw fit, so this Government see fit, in a sensible and prudent way, to manage the Government finances.
Steve McCabe (Birmingham, Selly Oak) (Lab)
How many accountants does the Minister know who would advise their clients to sell off an asset worth £3.5 billion for less than half that?
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Surely now, like at no other time, we should be educating our country as best we can for the future, particularly in view of the uncertain times ahead. Does the Secretary of State not agree that this House has the right to demand that all the money thus received is spent on education and only education?
Ruth George (High Peak) (Lab)
The value of these loans is raised by the extortionate interest rate being charged to ex-students—at 3% above the retail prices index, it is currently 6.1%, which is far higher than the rate for any other loan available on similar terms. Have the Government made an assessment of the impact of these loans and repayments on young people’s ability to find housing, buy a home and get a secure financial future?
Mr Gyimah
These loans are earlier loans and not affected by the current interest rate policy. I make it absolutely clear that whoever buys the loans cannot alter the terms of the loan. The post-18 review is looking at interest rates on existing loans, as well as a number of other aspects of the student finance system.
Dr David Drew (Stroud) (Lab/Co-op)
Will the Minister elucidate how many students have yet to make any payments in terms of their loan obligations? What analysis have the Government made of why they have not yet made any payments?
Mr Gyimah
The hon. Gentleman, an experienced parliamentarian, will know that we have an income-contingent loan system. The repayment threshold has recently been raised from £21,000 to £25,000, thereby benefiting students to the tune of £300 a year. Deliberately designed into the system is a subsidy from the Government; we understand that 45% of students will not pay back the loans in full—that is the subsidy that goes into the loan system. The system means that no one is barred from going to university as a result of their personal financial circumstances.
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
One benefit of being elected to this place last year was that I was able to pay off my student loan much quicker than I expected. As the Minister will be aware, it was arrested from my wages directly, in the same way as national insurance contributions and income tax. So why on earth would the Government sell off future revenue sources such as student loans, given that they would not dream of doing it for national insurance or income tax? This is absurd.
Mr Gyimah
The repayments are collected through the tax system, and that does not change at all. All that changes is that the benefits of the future income stream now accrue to someone else. That is done not only by Governments around the world, but by businesses. It is a simple fact that if we can capture the value of an uncertain income stream today at a reasonable price, it makes sense to do so.
Tom Pursglove (Corby) (Con)
Have lessons from previous loan book sales informed the decision making on this tranche?
Mr Gyimah
I caught just the tail end of that question. If I understood it correctly, my hon. Friend was asking about the process and the decision making in the past. We have been dealing with this for two decades in this place; under the last Labour Government there were mortgage-style loans, where loans were sold to private investors, who could contact students directly and chase them for the money. That has now changed under this system.
Paul Blomfield (Sheffield Central) (Lab)
Will the Minister tell the House at what level the Department is currently assessing the resource accounting and budgeting charge? Will he share his consideration of the Office for National Statistics review of the treatment of unrepayable debt on the Government books?
Mr Gyimah
The RAB charge was at about 35%, but as a result of raising the repayment threshold from £21,000 to £25,000, which in essence makes the loan system more generous, it now stands at 45%. The hon. Gentleman is right to ask about the ONS reclassification of the student loan book, but that is an exercise the ONS is going through and we have yet to hear what its recommendations are. When we find out what those recommendations are, both the Department and the post-18 review will look at them and take the appropriate action.
Mr Speaker
It is very good of the Minister for Security and Economic Crime to drop in on us; he is just in time for the next urgent question and we are greatly obliged to him, but I note that the shadow Minister is not yet present, which is mildly disappointing. It was disappointing that the Minister left it as late as he did, but there is obviously not always very good communication between Whips Offices and ministerial offices. We should now proceed with the urgent question, because the hon. Member for Rhondda (Chris Bryant) is present, although if people wish to raise points of order, I might be tolerant of them. There appears to be no great appetite for points of order at this time—
Competitiveness Council
Sam Gyimah Excerpts(5 years, 7 months ago)
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The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
Day One
The first day of the Competitiveness Council (Internal Market and Industry) took place on 27 September 2018.
The UK was represented by Katrina Williams, Deputy Permanent Representative to the EU. The legislative and non-legislative “A” items were adopted; the UK abstained on a decision not to oppose the adoption of amendments to the regulation on vehicle type approvals, and on the adoption of European seabass quotas.
Regional policy and competitiveness
The routine “competitiveness check-up” on day one focused on the role that greater convergence in productivity within member states has to play in boosting the EU’s competitiveness. The UK joined others in support of so-called “smart specialisation” strategies and their emphasis on innovation and comparative advantage. Some member states welcomed the Commission’s intention to incorporate a regional element into the European semester. Over lunch, Ministers also discussed the next multi-annual financial framework in the context of competitiveness.
Artificial intelligence
The presidency identified priority areas for the EU on artificial intelligence (AI) relating to the uptake of technology, ethics and liability, and digital skills. The Commission confirmed its intention to publish an action plan by the end of the 2018 and recalled increased investment in AI proposed as part of the Horizon Europe and Digital Europe programmes.
An external speaker, Mr Michael Hirschbrich, urged member states to cultivate a new, positive “data culture” in Europe as a prerequisite for the EU to profit from the revolution in AI and machine learning. Germany felt this would be a challenge for the EU and would require public trust. Several delegations cautioned against over-regulating in this area and others argued that effective communication and realising the potential of new technologies in the delivery of public services would help to raise public trust and awareness.
The UK outlined its investment plans for AI, its inclusive approach to digital skills, work to establish an independent centre for data ethics and innovation, and noted the importance of regulatory co-operation in this area.
Single market
Under any other business, the Commission called for the full implementation of the geoblocking regulation and recalled the aims of a recent communication on the retail sector.
The Czech Republic and Latvia summarised the conclusions of events held this year to mark 25 years of the single market. Member states urged the Commission to produce a comprehensive and evidence-based assessment of the remaining barriers to trade, particularly in the area of services.
Day Two
Day two of the Competitiveness Council (Internal Market, Industry, Research and Space) took place on 28 September in Brussels. I represented the UK during the morning and lunch sessions of the Council. Katrina Williams, Deputy Permanent Representative of the UK’s Permanent Representation in Brussels took the UK’s seat during the afternoon session.
Progress report and policy debate on the Horizon Europe Package: Framework Programme for Research and Innovation 2021-2027
The Council started with a policy debate on the Horizon Europe Package: Framework Programme for Research and Innovation 2021-2027. The UK called for excellence to remain the key criterion for awarding Horizon Europe funding. The UK also suggested that space should become a separate cluster outside of “digital and industry”, and that the secure society cluster should be divided into two distinct clusters; one for “security” elements and one for “social sciences and humanities” elements. The UK also supported the presidency’s approach to the debate surrounding the legal base of the Horizon Europe Specific Programme, agreeing that the aim should be to reach a timely conclusion on the Horizon package.
Lunch debate on the Horizon Europe package—exchange of views with EP rapporteurs
During the lunch debate the Council had an exchange of views with EP rapporteurs Dan Nica and Christian Ehler. The UK made an intervention specifying UK’s priority areas for amendments and encouraging debate amongst MEPs at the first exchange of views on October 8.
Strategic planning process in relation to the Horizon Europe Framework Programme for Research and Innovation 2021-2027
The Council concluded with a policy debate on the strategic planning process in relation to the Horizon Europe Framework Programme for Research and Innovation 2021-2027. The UK made an intervention seeking to help find consensus in Council on the process and status of the plan, agreeing that broad areas for missions and partnerships should be set out in the specific programme and suggesting that the process for selecting specific missions and partnerships should also be included. The UK agreed that more detailed strategic content should be determined at a later date.
[HCWS980]
Government Asset Sale
Sam Gyimah Excerpts(5 years, 7 months ago)
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The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
Today, I can confirm that the Government are announcing their intention to proceed with the second sale from the “plan 1” (i.e. pre-2012) English student loan book. The sale covers loans issued by English local authorities only under the previous (pre-2012) system, specifically those which entered repayment between 2007 and 2009, with a total face value of around £3.9 billion. This is the second sale of the Income Contingent Repayment (ICR) loan book, and it is proceeding on the basis that there is a reasonable prospect of achieving value for money. It will only complete subject to market conditions and a final value for money assessment.
As the Government have previously made clear, the position of all graduates, including those whose loans are part of a sale, will not change as a result of the sale. A sale will not alter the mechanisms and terms of repayment and sold loans will continue to be serviced by Her Majesty’s Revenue and Customs (HMRC) and the Student Loans Company (SLC) on the same basis as equivalent unsold loans. These protections mean that purchasers will have no right to change any of the current loan arrangements or to directly contact borrowers. Government have no plans to change, or to consider changing, the terms of pre-2012 loans.
The sale terms are expected to include a number of warranties and indemnities for sale arrangers and investors, which give rise to contingent liabilities for Government. In this case, although there is specific statutory authority for the liability under the Sale of Student Loans Act 2008, I believe it is appropriate to notify Parliament before incurring these liabilities. As a matter of record I have placed a departmental minute in the Libraries of both Houses describing the contingent liabilities that the Department for Education will hold on behalf of Government as a result of this second sale of the pre-2012 English student loan book. The maximum contingent liability against the Department for Education is unquantifiable and is expected to be in place for as long as there are outstanding securities.
The House will also be informed if and when a sale is completed.
[HCWS979]
Government Chemist Review 2017
Sam Gyimah Excerpts(5 years, 8 months ago)
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The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
The 21st annual review of the Government Chemist has been received. The review will be placed in the Libraries of the House plus those of the devolved Administrations in Wales and Northern Ireland. The review will also be laid before the Scottish Parliament.
The Government Chemist is the referee analyst named in Acts of Parliament. The Government Chemist’s team carry out analysis in high-profile or legally disputed cases. A diverse range of referee analysis work was carried out during 2017, including measurement disputes relating to alfatoxins, nitrofuran contamination, authenticity, protein allergens and sulphites.
[HCWS946]
Brexit, Science and Innovation
Sam Gyimah Excerpts(5 years, 8 months ago)
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Anneliese Dodds (Oxford East) (Lab/Co-op)
I am grateful to the Chair of the Science and Technology Committee for starting this debate in such a positive manner, and I am grateful for his work and the work of other Select Committees in this area. It is a real pleasure to follow the interesting remarks of the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont). Unlike him, I will refer to the impact of some of the matters at hand, particularly on my constituency.
That constituency is Oxford East, which contains a very high proportion of staff working in the fields of science and research. Many of them are very proud of what has been achieved through European research collaboration, whether it be at Oxford University, at Oxford Brookes University, or at other allied research centres such as the Culham Centre for Fusion Energy. Their research is not just important for my city—it is enormously important for the world and for dealing with global challenges.
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
indicated assent.
Anneliese Dodds
I am pleased to see the Minister nodding his head. I have also been pleased to see him in my constituency learning about some of the technology associated with some of that scientific research. We see in Oxford, through European funding and collaboration, the development of new medical technologies and of new clean energies for the future, and important work on dealing with modern threats from cyber-attacks, for example.
This is a timely debate, because it comes after we have had some more clarification following the release of the White Paper just before the summer, and then, more recently, the different papers on preparations in the event of no deal. There are three areas where we have more clarity, particularly through the no deal preparation papers, but two big challenges still exist. First, in very recent weeks—I would have preferred it to be earlier—we have had an indication that the Government will continue to fund European research programme participation until 2020, at least in Horizon 2020. We had a useful discussion earlier about some of the challenges in trying to seek associate status in what is becoming Horizon Europe. We often speak about Britain being committed to preserving the focus on excellence in European science, but that is not unique to British politicians or British scientists. We can sometimes risk coming across as patronising in that regard. We have many allies in Europe who also want to preserve that focus on scientific excellence, even when there have been pressures towards, for example, more regionalised funding or other metrics being used. It is important that we seek to collaborate with them rather than presenting the UK alone as having an interest in that, which would be thoroughly inappropriate.
Secondly, the Government told us in one of the no deal papers that after 29 March, if there was no deal, the UK would leave Euratom but continue funding for its share of the joint European torus—subject, of course, to the Commission extending the contract until then. We also received notice over the summer that the Government have finally, in my view, seen the light—I hope that does not come across as too pejorative—with regard to clinical trials. I have been quite frustrated by some of the discussions in this place on that topic. A lot of the time, they have focused on the shortcomings of the previous clinical trials regime rather than on the incoming regime. It is good to see the Government finally stating that in the event of no deal, the UK would seek to align, where possible and without delay, with the clinical trials regulation regime. The scientists I have talked to in Oxford are very concerned that we could be shut out of opportunities for research collaboration and data sharing if we do not align with the new regime that is coming into play, which is specifically focused on greater data sharing.
We have had some clarity, but we need far, far more. I want to push for that in two areas, one of which we have not yet gone into in detail on: nuclear research. I am concerned about the language that we still see in the no deal paper on nuclear research. That language, in common with what we heard in the Lancaster House speech, seems to be incredibly passive. The no deal paper states:
“When the Joint European Torus operating contract ends, the UK government is willing to discuss options to keep Joint European Torus operational until the end of its useful life.”
“Willing to discuss options” sounds incredibly passive when we are talking about a very important technology and very important scientific research. It almost suggests that we will wait and see what we are offered by the EU27. I hope that that language does not reflect the Government’s intentions, which are hopefully much stronger. I hope that the Minister can clarify that.
Thirdly, we still lack clarity around the immigration regime, particularly for early-career and technical staff. The Government have released details about the regime for staff who are already based here, although I know from my postbag—I am sure other Members do as well—that there are continuing concerns among those people. I continue to worry about language focused on the “brightest and the best”. As others have usefully said, if salary is viewed as a proxy for promise and skill, then we will not be where we should be. We should view the science and research career structure as a pyramid where we have at the bottom large numbers of post-docs and short-period researchers who are relatively low paid. They can stay in that situation for quite a long time before they start to proceed up the salary structure, but they are doing incredibly important scientific work. It is important that the Government listen on this subject, because that concern has frequently been mentioned to me on the doorstep by people who are in that situation —early-career researchers who want that mechanism to stay open to others from the rest of Europe in the future. It was also mentioned to me by many impressive researchers whom I met during my Royal Society fellowship in the medical sciences division of Oxford University. This is a live concern.
We need that clarity—and, as we have heard, we need it very, very soon. We are running out of time on many of these issues. After the White Paper was released before the summer, the head of Brexit strategy for Oxford University, Alastair Buchan, called for the aspirations in the White Paper to become firm, detailed commitments in advance of the October EU Council. We have just heard that we have been promised some more detail around the migration arrangements, in particular, in September. We are already into that month. We need to have that information, because this is affecting how future research projects are being designed.
I thank the Chair of the Select Committee and all colleagues for what has been a constructive debate so far.
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
I thank the right hon. Member for North Norfolk (Norman Lamb) and the Select Committee for their report, which was published in March. I welcome its recommendations. A lot has happened since March, so while I would like to take the opportunity to respond to the points that were made in the report, I will also give reassurances in terms of developments since it was published.
The world is changing and the world of science is changing. For the UK to remain at the forefront of scientific research and endeavour, we need to invest financially, but we also need to be open to collaboration. The best science is done internationally and through collaboration. The best science is not just about curiosity and blue-skies thinking; the best science affects us in our day-to-day lives. In terms of our collaboration with the EU, from the development of an Ebola vaccine to the discovery of graphene, the toughest material ever tested, the partnerships we have built with the EU have led to life-changing discoveries.
It is heartening to know that the UK plays a vital role in this landscape. Since 2014, UK researchers and innovators have been awarded 15% of all Horizon 2020 funds—about £4 billion—and we have co-ordinated about 20% of all projects. From the Euratom research and training programme, the UK receives about 17% of its annual budget. The UK also hosts the most advanced nuclear fusion reactor on behalf of the EU.
The Government are not only putting their money where their mouth is on science, with this country’s highest ever investment in public R&D, we are determined to be a top collaborator with the EU and the world in future. Currently, the EU is our biggest collaborative partner. We are a top-five partner with each of the EU member states and the EU as a whole. We are working to make sure that that remains so. That is why we want to agree an ambitious science and innovation accord with the EU, one which facilitates the exchange of researchers and ideas along with allowing for UK participation in EU research programmes, including the successor to Horizon 2020—Horizon Europe—and Euratom research and training.
The Opposition spokesperson, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), said that Labour has committed to associate with Horizon Europe. Not only have this Government committed to doing so, but we have published our intentions in a position paper and we are actively in discussions to make this happen.
Norman Lamb
I am pleased to hear the positive tone that the Minister is taking. How confident is he, on the basis of the negotiations so far, that we will be a partner in Horizon Europe?
Mr Gyimah
I am extremely confident that there is scope for a win-win deal as far as science is concerned, and in my speech I will outline some of the reasons why.
To pick up a point that was made by the hon. Member for Oxford East (Anneliese Dodds), it is important to be conscious of the language here. The language of the texts that are used is the language of negotiation, but that necessarily does not reflect our desire and our ambition, because in a negotiation we make sure that we play our cards very closely and often as close to our chest as possible. We do that and so do our counter-parties in the EU.
I want to give the House the assurance, having spoken with Commissioner Moedas and fellow Ministers in various member states, that it is clear that there is an appetite on their side as well to continue the EU’s long- established relationship with the UK.
We want not only to confirm our relationship through a co-operative accord, but to build on that through exploring full association. We are taking steps to look at what it would take to achieve this, and, together with my officials, we are in constant dialogue with other association countries—my officials were in Switzerland last week to discuss the Swiss experience of going through the negotiations that we are going through—but as I have said in the past and to the Select Committee, association cannot come at any cost and any agreement must work for both the UK and the EU.
We must be sure that our priorities for the programme are recognised and understood. Those include ensuring that the programme remains focused on excellence. If there were desires to widen participation, for example, we would argue that that is what EU structural funds are for, rather than funds from the science and innovation programme.
We also want EU added value, and we want this to be open to the world, as outlined in our position paper, which was published in March to feed into the design process. We are also keen to ensure an appropriate financial contribution for associate countries, as well as a suitable degree of influence. As I said to fellow EU Science Ministers in May at the last competitiveness Council, it is important on the EU’s part that they do not take actions or steps that devalue being an associate member and partner as they think about their own positions in this negotiation.
A number of points were made, particularly by the right hon. Member for North Norfolk, about the timetable on the regulations for Horizon. As he will be aware, the Commission published its draft proposal setting out the Horizon Europe programme on 7 June. This proposal is being discussed in detail in the Council, the working groups and the European Parliament. As such, the detail will not be set in stone until those institutions agree. This process may therefore continue beyond March 2019. Until that regulation is finalised, association to the programme will not be possible.
On why we do not have an early science deal, despite the fact that the desire and the will are there, it is difficult for us to associate with a programme that is still being discussed, negotiated and designed.
Quite rightly, a question was asked about what we mean by a level of influence. Until the draft Horizon Europe regulations are finalised, we would not want to comment on some of the specific details of the programme, but we would like the detail of specific elements to include participation, but also influence as associate members. We would want UK scientists, for example, to continue to play a role in technical discussions and exert soft influence in the process.
The Select Committee has been concerned about the level of urgency and focus as far as this negotiation is concerned—within Whitehall, but also within the EU. I give the House the assurance that we are playing a full and constructive role through discussions and the Council working groups on shaping the initiative, which will be supported through Horizon Europe.
We are determined that, while we are still members of the EU, we will use every lever of influence we have to help to shape the programme that we will want to associate with further down the line. The meetings started this week, and we will continue to play an active role until we are no longer a member state.
I am also aware that we are not the only ones who will be personally impacted by the results of these discussions. That is why I have asked the UK science base to inform the development of policy through the high-level group that I chair once a month. Its meetings provide an excellent forum for key members of the science and innovation community to offer their thoughts and concerns and have proven highly valuable.
We have also had two rounds of talks with the Commission. They were productive conversations, where the Commission agreed that science and innovation should be an area of co-operation between the EU and the UK. Through these mediums, we are ensuring that Horizon Europe and the Euratom research and training programme will provide value for money and be suitable for us to associate with. I can assure the House that an excellent team of professionals is working round the clock to make sure that science and research are not forgotten as we go through this important negotiation.
I am aware that this is not just about money; it is also about ensuring that the UK remains a partner of choice for international collaboration in the EU, but also on a global scale. The Select Committee will be aware that we have made significant progress in exploring new avenues with existing partners—signing agreements with the US and Canada, and publishing a joint UK-China strategy and, more recently, an agreement with the Israel Innovation Authority. Those achievements reflect our shared commitment to drive growth and tackle global challenges, and I want the UK to maximise all opportunities to continue to contribute to life-changing discoveries across the globe.
Mobility is absolutely crucial to success in this field, and I recognise that co-operation in this context is dependent on the UK’s ability to continue to attract global talent, including from the EU. With that in mind, I assure the House that we are carefully considering the options for our future immigration system. The Department is in regular discussions with the Home Office, and I have personally had discussions with the Home Secretary on how to support the movement of those engaged in science and research. We look forward to the publication of the Migration Advisory Committee’s report, and we will consider its conclusions and recommendations before taking decisions on the future immigration system.
We want to carry on bringing together brilliant talent and inventive minds from across the globe. We have shown that we are serious about this, with the recent introduction of the UK Research and Innovation-led scheme to support the temporary movement of scientists and researchers. We have also doubled the number of tier 1 exceptional talent visas for top global scientists to 2,000, but I note the concerns that were raised earlier in the debate. Removing doctors and nurses from the ambit of the tier 2 visa cap also provides more scope, but I take on board the points that have been made about friction.
Those changes will help to underpin the UK’s position as a hub for international collaboration and research. The £1 billion UK Research and Innovation Future Leaders Fellowships programme is also open to international scientists, and that is example of us putting our money where our mouth is in terms of attracting the brightest and the best.
Despite that progress, there are other things we need to think about and act on, one of which is ensuring the existence of an appropriate regulatory environment. On that front, continued co-operation is in the best interests of the EU and the UK. I understand that there are further questions about what the future looks like, and I want to reassure the House that I am actively engaging with my European counterparts and with colleagues across Whitehall to make sure that we secure the right outcome for the UK science base as we exit the EU.
We are working constructively with European colleagues to find a positive path towards a future relationship on science and innovation, but we are also being a responsible Government in preparing for every eventuality. On 23 August, we published a technical notice setting out the actions we will take to enable continued participation in Horizon 2020. First, we have given UK participants a guarantee that the Government will underwrite EU funding for all ongoing Horizon 2020 projects, as well as for successful bids submitted before exit. This guarantee applies even if participants are notified of their successful bid after exit. In July, the Chancellor announced an extension to the guarantee, which will now, additionally, fund UK organisations that successfully apply to calls open to third country participation after exit day and until the end of Horizon 2020.
I am aware of some recent press reports suggesting that a no-deal scenario will threaten the ability of UK participants to co-ordinate Horizon 2020 projects. I am happy to clarify that UK entities would still be able to lead projects and carry out all usual co-ordination tasks as a third-country participant. The funding guarantee provided by the underwrite, and the extension that is in place if required, includes funding for co-ordination tasks if they are carried out by a UK co-ordinator. This would help ensure that the UK remains at the centre of collaborative science and research.
On the practical considerations, to deliver the underwrite guarantee, we will soon launch an online portal where UK participants can register their details. The portal is designed to make sure that our delivery partner, UK Research and Innovation, has the initial information it needs about current participants. I encourage all UK participants to register their details when the portal is available; this will help UKRI to keep them informed of what they need to do to receive their funding if the underwrite is required.
We are considering what other measures may be necessary to support research and innovation in a no- deal scenario. This includes looking at how we continue to support excellence-based research such as that currently funded by the European Research Council and Marie Skłodowska-Curie Actions, which are not covered by third-country participation. We should not, however, lose sight of the fact that a good deal, including an ambitious science and innovation accord, is the best outcome for both the UK and the EU, and this remains our top priority.
Business, Energy and Industrial Strategy
Sam Gyimah Excerpts(5 years, 9 months ago)
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Crispin Blunt (Reigate) (Con)
I congratulate my hon. Friend on this extremely welcome statement. As a fellow Surrey MP, he will be only too aware of the importance of the space industry to our county and of the astonishing success of the work in our county for the country. Will he confirm that if the EU remains determined on this astonishing act of self-harm as regards the development of the Galileo project, it will have to bear the long-term costs of the loss of all the British enterprise and expertise in this area, and that we will be free of the immensely bureaucratic allocation of jobs under this European programme, as is reflected in European defence and other space programmes as well? Once we are free to put our expertise within the international alliances where we can get the best possible return on our scientific expertise, so much the better, and in the long term it will be our 27 partners who bear the cost of this astonishing decision.
Mr Gyimah
My hon. Friend is absolutely right. Were the UK not to continue to participate in the Galileo programme, not only would the programme be delayed but it would cost EU member states a lot more. Surrey Satellite Technology has been responsible for the cryptography and encryption of the Galileo system, and CGI UK, which has a presence in Surrey, has been responsible for building a number of the satellites. So the expertise and skills necessary to deliver the Galileo system reside in the UK, and were the EU to adopt what I consider to be an irrational position and not allow the UK to fully participate, we would not only take the action we need to take to protect critical national infrastructure, but we would also be at liberty to partner with other countries around the world, not only to develop our own global navigation and satellite system but to develop our space sector.
[Official Report, 18 July 2018, Vol. 645, c. 444.]
Letter of correction from Sam Gyimah:
An error has been identified in my response to my hon. Friend the Member for Reigate (Crispin Blunt).
The correct response should have been:
Mr Gyimah
My hon. Friend is absolutely right. Were the UK not to continue to participate in the Galileo programme, not only would the programme be delayed but it would cost EU member states a lot more. CGI UK has been responsible for the cryptography and encryption of the Galileo system, and Surrey Satellite Technology, which has a presence in Surrey, has been responsible for building a number of the satellites. So the expertise and skills necessary to deliver the Galileo system reside in the UK, and were the EU to adopt what I consider to be an irrational position and not allow the UK to fully participate, we would not only take the action we need to take to protect critical national infrastructure, but we would also be at liberty to partner with other countries around the world, not only to develop our own global navigation and satellite system but to develop our space sector.
Space Policy
Sam Gyimah Excerpts(5 years, 9 months ago)
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The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
With permission, Mr Speaker, I will make a statement on a key development in UK space policy.
As a result of announcements made this week, the United Kingdom will, for the first time ever, be able to launch satellites from its own soil. This is a development that the whole House should welcome and celebrate. The space sector is changing globally, and at a pace never seen since the race to the moon. It is allowing us to answer questions about ourselves and the universe that curious minds have debated for centuries, but it has also seen the development of technologies that are transforming our day-to-day life here on Earth. For example, the technology that was developed to provide clean air on the International Space Station is now being used to control the spread of superbugs in hospitals across the world.
The UK is well placed to be at the forefront of developments in space, and the Government are determined that we will take advantage of the vast opportunities that are available to us as a country. That is why I met the new NASA administrator, Jim Bridenstine, today to discuss UK-US collaboration. As we all know, NASA is the biggest space agency in the world, with budgets in excess of $10 billion a year. We discussed how to extend and deepen the opportunities for our two countries to collaborate, especially in relation to the hugely ambitious vision for exploration set out by President Trump.
It is nearly 50 years since man landed on the moon, and since then we have been no further. Questions remain about whether or not we are alone in the universe. The UK has been at the forefront of robotic exploration to address that question. Indeed, our space industry built the Mars Rover, which will be launched in 2020, and I am very excited that later this week I shall be able to announce a competition related to that mission. We want to continue to be at the forefront of the next human exploration missions, working alongside NASA and the European Space Agency, but space is also a fundamental part of our economic future. The UK space sector is growing. It is worth about £13.7 billion to the economy according to current estimates, and it employs more than 38,000 people across the country.
As is set out in the Government’s industrial strategy, we are working with industry to increase the UK’s share of the global space market from 6.5% to 10% by 2030. The sector has grown at an average of more than 8% every year over the last decade, and three times faster than the average sector over the last five years. Space is a growth sector not only in its own right but as part of our “critical national infrastructure”, underpinning all other key industrial sectors including agritech, automotive, aerospace, maritime and energy. Our space sector is one of the most innovative in the world. It is a world leader in small satellite technology, telecommunications, robotics and Earth observation. For example, we build 25% of the world’s telecommunication satellites and our universities are some of the best in the world for space science.
This week the UK has seized an opportunity to capture a share of the emerging global market for small satellite launch. The Government are working to create the capability and conditions for commercial spaceflight to thrive in the UK. The Government’s industrial strategy includes support for a £50 million programme to kick-start small satellite launch and sub-orbital flight from UK spaceports. Funding will be used to support the first launches from the UK and to deliver a programme of work to realise benefits across the country.
The Government have made announcements this week which underpin our commitment to the sector. A £2.5 million grant has been announced for a vertical spaceport site in Sutherland, on the north coast of Scotland. That the first ever satellite launch from the UK could be from Scottish soil highlights our commitment to the Union. With the support of £29 million of industrial strategy funding, Lockheed Martin and Orbex will be the first companies to set up operations in Sutherland, delivering capable commercial and globally competitive small satellite launch services. Not only does the UK have the technical skills and capability, we have the geography. We are seeing the biggest growth in the sector in small satellites, which are typically launched into polar orbits. This makes the position of the UK a very favourable launch site.
But it is not just about vertical launch capability. The Secretary of State for Business, Energy and Industrial Strategy also announced a £2 million fund to help horizontal spaceports to progress their plans from our £50 million industrial strategy fund for the UK spaceflight programme. Separately, Newquay airport, Cornwall and Virgin Orbit have signed a memorandum of understanding this week, which is an important and positive milestone towards establishing a leading horizontal commercial launch provider at a UK spaceport. We cannot underestimate the scale of the opportunity here, from entering new markets such as space tourism to transforming our intercontinental travel. The Government are providing support not only through funding, but by putting in place the right regulatory framework to enable commercial success.
I am pleased that the Government are not alone in recognising this opportunity. Up and down the country, ambitious local authorities and private investors are coming together to help build our space capability. The rapid growth at the Goonhilly site in Cornwall is further evidence of the excitement in the sector. As technology evolves and reduces the cost of access to space, there is an exciting opportunity for the UK to thrive in the commercial space age. A sector deal for space aims to build on our global leadership in satellites and applications using space data to create a hub in the UK for new commercial space services. Following the sector’s publication of its “Prosperity from Space” proposal in May, we intend to work with it to explore how a sector deal can drive forward the Government’s industrial strategy. We are also developing world class facilities, including the National Space Propulsion Facility in Westcott and the National Satellite Test Facility in Harwell, as well as business incubators in more than 20 locations to support British start-ups hoping to grow into successful space companies.
The whole of the Government recognise the strategic importance of space and the immense economic opportunities it can bring. In a week where the focus of this House has been on the process of withdrawal from the EU, it is important to recognise that space is an area where we are leading new international partnerships. This is nowhere better evidenced than our international partnerships programme delivering tele-education and tele-medicine, which provides the backbone of future economic growth. One programme alone reached 17,000 students in Kenya with a 95% improvement in learning outcomes.
The Government are determined that UK companies are at the forefront of this space revolution, and our economy and the people of this country all benefit. I commend the statement to the House.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
I thank the Minister for advance sight of the statement.
We welcome this investment in the UK space sector. The global space economy, currently valued at about £160 billion, is estimated to be worth £400 billion by 2030. The UK should be leading the way. But why has it taken the Minister so long to come to the House with an announcement that was briefed to the papers three days ago? I hope he does not see the sector as merely a means to positive headlines for a beleaguered Government.
I have characterised Government policy in this area as “lost in space”. While this announcement is a step forward, it certainly does not mean it’s coming home. The Minister is right to talk about the inspirational nature of space and its down to earth economic benefits. At this morning’s Foundation for Science and Technology roundtable, which I attended, NASA’s chief technologist was able to set out the spin-offs from its programme. I look forward to a UK Minister being able to do the same. However, while the Government’s industrial strategy promised £1 billion in space technology investment over four years, this week’s announcement amounts to much less than that. So I ask the Minister: when will the Government announce the release of further funds for space? Will that be impacted by the £5 billion cost of his Galileo replacement? When will the space sector deal be published?
The thriving industry that we all want to see requires a strong regulatory framework and engagement with industry, yet the Space Industry Act 2018, passed earlier this year, is but a skeleton. When will the secondary legislation be in place to provide the regulatory certainty the industry needs? In addition, drones can affect the launch of spacecraft, but they are not covered under the Act. When will the Government bring forward the promised legislation to deal with them?
As Lord Heseltine made clear in his response to the Government’s industrial strategy, the European Space Agency is a great example of proactive industrial intervention by British Government at European level. This Government could learn a lot. Four fifths of Government investment in space is made through the agency, but the Government’s chaotic Brexit is endangering public and private investment, with Airbus announcing in April that it would relocate work on a €200 million ESA contract from Portsmouth to the continent. What steps is the Minister taking to ensure the UK continues to play a leading role in the ESA post Brexit? How will we maintain space sector supply chains, and the exchange of space scientists and engineers on which they depend?
The proposed Sutherland spaceport will be the northernmost operational spaceport in the world. As a Newcastle MP, I am all for going north. However, spaceports are overwhelmingly sited near the equator where the Earth’s rotational speed is highest, allowing rockets to harness an additional natural boost. Does funding take into account the potential extra costs associated, and what factors were taken into consideration when choosing the location far from the equator, although close to Tory marginals?
As the Minister said, the entire country should benefit from the amazing opportunities posed by space. What steps are the Government taking to ensure the fair regional distribution of space sector supply chains, creating good jobs across the country and ensuring that those jobs should be open to all in a diverse and inclusive space sector?
Mr Gyimah
I thank the Opposition spokesperson for recognising and welcoming the good news this week.
The announcement was made at Farnborough, but my statement demonstrates that there is far more going on in the Government’s space policy than that specific announcement: deeper collaboration with NASA in the US; collaboration with the European Space Agency; investment in our capacity at Harwell; and a space sector deal. So this statement goes far beyond what was announced at Farnborough earlier this week, and it is all good news that I think the House will welcome and, hopefully, celebrate.
On the European Space Agency and our role in Europe, the hon. Lady will know that the ESA is not an EU institution; it is independent of the EU and we are, and will continue to be, a leading member. We see the ESA as key to our strategy for international collaboration—and it is worth recognising that the fact it has “European” in its name does not make it an EU institution, as was suggested.
All the announcements made today are in addition to what we will do with regard to Galileo. We have made it clear in our EU negotiations that our first preference would be to continue to participate in all elements of the Galileo system; that would include the security and sensitive parts of the system, but it should also include UK industry’s being able to participate in it. Were that not forthcoming, we have the option of building our own satellite system. The UK is a proud and independent country, and as a lot of the know-how and skills for the Galileo system is from UK-based companies, I am confident that we could build our own. To that end, the Prime Minister has set up a taskforce to look at the feasibility of doing so, and once that information is available it will be made public to the House and more widely.
On why the first space launch in the UK will be in Scotland and not near the equator, I can reassure Members that equator launches tend to be large satellites to geostationary orbit, but the growth we are talking about here is in small satellites and these tend to be polar. That is why we are ideally located as a country to take advantage of that emerging technology.
This is a huge opportunity for this country, and we are determined that all of the UK should benefit. Not only Scotland, but Cornwall and Snowdonia have the potential to benefit, and the announcements this week will allow market development in all of these areas. The private sector will of course ultimately carry this forward, and there is nothing to stop local authorities working with the private sector to capture the benefits of this huge development for our economy.
Crispin Blunt (Reigate) (Con)
I congratulate my hon. Friend on this extremely welcome statement. As a fellow Surrey MP, he will be only too aware of the importance of the space industry to our county and of the astonishing success of the work in our county for the country. Will he confirm that if the EU remains determined on this astonishing act of self-harm as regards the development of the Galileo project, it will have to bear the long-term costs of the loss of all the British enterprise and expertise in this area, and that we will be free of the immensely bureaucratic allocation of jobs under this European programme, as is reflected in European defence and other space programmes as well? Once we are free to put our expertise within the international alliances where we can get the best possible return on our scientific expertise, so much the better, and in the long term it will be our 27 partners who bear the cost of this astonishing decision.
Mr Gyimah
My hon. Friend is absolutely right. Were the UK not to continue to participate in the Galileo programme, not only would the programme be delayed but it would cost EU member states a lot more. Surrey Satellite Technology has been responsible for the cryptography and encryption of the Galileo system, and CGI UK, which has a presence in Surrey, has been responsible for building a number of the satellites. So the expertise and skills necessary to deliver the Galileo system reside in the UK, and were the EU to adopt what I consider to be an irrational position and not allow the UK to fully participate, we would not only take the action we need to take to protect critical national infrastructure, but we would also be at liberty to partner with other countries around the world, not only to develop our own global navigation and satellite system but to develop our space sector.[Official Report, 23 July 2018, Vol. 645, c. 6MC.]
Carol Monaghan (Glasgow North West) (SNP)
As I am a physics teacher, this news is extremely welcome to me. When the Scottish schools go back in approximately three weeks, no doubt the teachers will be telling the pupils all about the spaceport that will be in Scotland.
As a teacher I never imagined we would have such a facility in Scotland, but I never wrote it off as “science fiction” as a certain Tory MSP did last summer. I have had the privilege of visiting Kennedy space centre and the economic and educational opportunities are immense; I hope we will see similar at the A’ Mhòine site.
But space also drives innovation that is critical for other sectors. At present Scotland is home to 18% of the UK’s space sector jobs. It has a thriving satellite industry, Glasgow and Strathclyde universities are training the future space physicists and engineers, and the Scottish physics curriculum has been tailored towards space. So I say to the Minister that this is not about the ambition of a certain US President or commitment to the Union; it is about the fact that the A’ Mhòine peninsula in Sutherland is perfectly placed both in terms of its geographical position for vertical launches, because very few places allow that to take place, and in terms of the educational and manufacturing environment I have described.
There are, however, other spaceports around the UK that could support horizontal launch. What specific steps is the Minister taking with these sites to ensure that the ambition is not isolated, and that many can benefit? What recent conversations has the Minister had with the ESA regarding the exclusion of UK companies from Galileo? They need the answers to that now. Finally, may I ask the Minister for an update on the liability cap? Unless that cap is in place, Clyde-built satellites will still be launched elsewhere.
Mr Gyimah
It is highly unusual to get welcoming remarks from the Scottish National party, and I am tempted to just bank them and sit down.
We are very aware that Prestwick is home to innovative launch companies like Orbital Access and is close to Glasgow’s world-leading small satellite industry, and that Snowdonia is a leading site for remotely piloted vehicles and autonomous testing. We want all of the UK to benefit from this huge technological development. That is why we announced additional grants this week, so that they can bid for them to develop the market in their area and make a success of space.
Mark Pritchard (The Wrekin) (Con)
On Galileo and a possible replacement satellite system, is it not in the EU’s security interests as well as our own national security interests for the EU to continue to work together collaboratively with UK industry, and in particular the space sector?
Mr Gyimah
My hon. Friend puts his finger on why the situation with Galileo is so hugely frustrating. Only about two months ago we worked very closely with the French Government on military strikes in Syria, so the idea that the UK somehow cannot be trusted on sensitive security matters is totally for the birds. Our future participation, if we were to participate, is dependent on our ability to independently ensure the integrity of the system, so that we can rely on it for strategic defence and security uses. That is why the UK has put forward its red lines, but I agree that there is huge benefit in mutual co-operation and the Commission would do well to take the rational position that that is in our mutual security interests.
Liz Kendall (Leicester West) (Lab)
Leicester is a world leader in space research and engineering, working with NASA and partners across the world. Our new space park will create 3,000 jobs—I hope the Minister will visit us one day. He says he is frustrated with the EU’s reaction on Galileo, but I have heard nothing practical from him about what he will do to protect the Airbus jobs directly related to Galileo in Leicester and to ensure the free movement of EU scientists and researchers, who are so vital to this critical industry of the future.
Mr Gyimah
I am very aware of Leicester’s leading position in space research and science research, and I am looking forward to visiting the university shortly to discuss some of these matters. In terms of what the Government are doing specifically with Galileo, I am in close contact with all the UK companies involved in the programme, and a taskforce is looking at the feasibility of building our own satellite system. That would obviously deliver contracts for UK-based companies. There is also the space sector deal that we are bringing forward shortly, alongside huge investment in research and development, all of which could benefit the UK companies that have huge expertise in this area. So I hope I can reassure the hon. Lady that we are not sitting down and taking this lightly.
Vicky Ford (Chelmsford) (Con)
A lot of the UK has a hosepipe ban at the moment, but in Chelmsford, Teledyne e2v is inventing a gravity sensor that will go on a small satellite and be able to look at water reserves underneath the earth. This is the future. When will we be able to launch small satellites from the UK?
Several hon. Members rose—
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Indeed I am, Mr Speaker. I welcome the announcement that the spaceport will be in my constituency. [Hon. Members: “Hear, hear!”] I am gratified that so many Members have come into the Chamber to hear me ask this question. [Laughter.] On behalf of my constituents, I thank the UK Government for making this decision. Jobs do not exactly grow on trees in my constituency, and this will be, to coin a phrase, a boost to the local economy. It means that quality jobs will take off.
I have three questions. First, will Orbex and Lockheed Martin be encouraged to start employing local people, and perhaps apprentices, as soon as possible? Secondly, there is great potential for putting satellites into orbit on behalf of other countries that do not have such facilities. The UK could make a lot of money out of that. Will the Minister assure me that Her Majesty’s Government will flex every sinew to get this business? Finally, Viscount Thurso chairs VisitScotland, and there is enormous on-land tourism potential involved in this project. Will Her Majesty’s Government please work closely with VisitScotland to ensure that visitors come to my constituency to see the first rocket taking off?
Chris Skidmore (Kingswood) (Con)
I welcome my hon. Friend’s statement on this matter. As part of the new space sector deal, will he recognise the importance of research and development, particularly in materials technology? With that in mind, may I extend an invitation to him as Science Minister to come to the National Composites Centre and the Bristol and Bath Science Park to see the excellent work that is being done there in this regard?
Stephen Morgan (Portsmouth South) (Lab)
We have heard reports that the space industry has developed proposals for a sector deal, but may I press the Minister to confirm when that sector deal will be agreed and published?
Michelle Donelan (Chippenham) (Con)
I welcome today’s statement. This really is an exciting time for the UK’s space sector. Will my hon. Friend tell me what else the Government are doing to benefit the space industry, as this will be of particular interest to my constituents who work at the Corsham Airbus site?
Alex Sobel (Leeds North West) (Lab/Co-op)
More than 50% of UK satellite exports go into the European single market. How will the Taxation (Cross-border Trade) Bill and the Trade Bill, both of which we discussed this week, affect the free-flowing movement of components into and out of the single market?
Tom Pursglove (Corby) (Con)
What benefit does my hon. Friend believe this sector will bring to the UK economy in the decades ahead? Does he believe that there will be direct benefits for our existing industrial supply chains, such as the steel industry?
Mr Gyimah
The space sector, in addition to being part of our critical national infrastructure, underpins our value in the economy to the tune of £250 billion. This is not just about pushing the frontiers of human knowledge; it is also about creating jobs and helping to power our economy forward. That is why this investment announcement is so important.
Patrick Grady (Glasgow North) (SNP)
I have a feeling that we are about to witness some rocket launches long before anything takes off from a site in Sutherland. Given the contribution that Glasgow makes to the space industry—more satellites are manufactured there than anywhere else in Europe, and pioneering research takes place in the space institute at the University of Glasgow in my constituency—what discussions will the Minister be having with university space institutes to ensure that they can access funding as a result of today’s announcement and that they are fully involved as this project moves forward?
Oral Answers to Questions
Sam Gyimah Excerpts(5 years, 9 months ago)
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Chris Green (Bolton West) (Con)
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
We want the UK to be the place where innovators, researchers and entrepreneurs turn ideas into reality. Our universities have a strong part to play within this, alongside business. That is why we are funding, through United Kingdom Research and Innovation, support for research collaborations between universities and business. We also have the industrial strategy challenge fund, as well as higher education innovation funding and our Connecting Capability funding. All of those will help universities work together with business.
Chris Green
The research partnership that exists between the University of Tokyo and Imperial College London is an excellent example of how the UK can benefit from sharing innovation and technology. What more will my hon. Friend do to ensure that we continue to strengthen academic networks and communities post Brexit?
Mr Gyimah
My hon. Friend makes a very important point. Our research and innovation collaboration is important in what we do with the EU, but also globally in what we do around the world. That is why UKRI has established a new £110 million fund to explore and develop international partnerships with leading science and innovation regions. We will also bring forward an international science strategy in the autumn.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Minister knows that many people working in our universities—brilliant scientists and innovators—are not on gold-plated pensions and do not have inherited wealth, like some of his hon. Friends. Will he look at universities in the United States, such as Cornell University, which have different ways of paying and incentivising research on those campuses?
Mr Gyimah
Just focusing on the substance of the hon. Gentleman’s question—[Interruption.] The reason behind UK Research and Innovation, which brings together all the research agencies in the UK, is that, for the first time, we have a strategic brain to direct UK research so that we can allow innovation and ingenuity to flourish in our universities. That is the best way to create returns that benefit the economy but also the best minds in our country.
Mr Speaker
I am sure that the hon. Member for Huddersfield (Mr Sheerman) did not bellow from a sedentary position like that when, as I referenced recently, he served with great distinction as a local councillor in the 1970s.
Jim Shannon (Strangford) (DUP)
I have one of the foremost medical research centres on the border of my constituency at Queen’s University Belfast. Will the Minister outline what grants are available to enhance facilities in these world-class research centres?
Mr Gyimah
The hon. Gentleman makes a good point. I am particularly interested in the research that Queen’s University Belfast is doing, particularly around areas of cyber-security. I look forward to visiting it in due course. Obviously, UKRI deals with all of the UK and that university will benefit from grants from UKRI too.
John Spellar (Warley) (Lab)
Adam Afriyie (Windsor) (Con)
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
The principal research funding route is through UK Research and Innovation, which in 2018 alone accounts for over £6 billion of investment in research and innovation. I am proud that the Conservative Government have overseen the largest increase in scientific research and development funding that we have ever seen in the UK. We are investing an additional £7 billion in R&D by 2022, as a first step in delivering our ambition of increasing the UK’s R&D spend to 2.4% of GDP.
Adam Afriyie
As a former shadow Science Minister, I am very conscious of the increases in funding, particularly in cash terms, but I am also acutely conscious that it is not just cash but the availability of talent that matters when it comes to science, innovation and the industrial base. Given the recent concerns around Brexit and everything else, will the Minister reassure me that the availability of highly talented scientists will still be a priority for this Government?
Mr Gyimah
The increase in funding is actually in real terms, but my hon. Friend is absolutely right: to succeed here, we have to be open to ideas and open to talent. He will have seen the recent relaxation in the tier 5 visa restrictions for scientists. We are also investing £900 million in UKRI’s flagship future leadership fellowships and a further £350 million for the national academies to expand their prestigious fellowships. When it comes to science, innovation and research, we are open for business.
Daniel Zeichner (Cambridge) (Lab)
I am sure that the Minister saw the recent report from the Office for Life Sciences, which showed that R&D investment in the pharmaceutical sector fell from £4.9 billion per annum in 2011 to £4.1 billion in 2016—a decline of £800 million per annum. To what does he attribute that, and given that life sciences are so important, what does he plan to do about it?
Mr Gyimah
I am aware that everyone in the life sciences sector has welcomed the life sciences sector deal. As part of our work to reach 2.4% of our GDP being invested in scientific research by 2027, we will be working with the pharmaceutical industry along with other industries to increase their research investment in the UK.
Carol Monaghan (Glasgow North West) (SNP)
When can we expect an announcement of the funding for the next phase of the national quantum technologies programme?
Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
As far as the Asda-Sainsbury’s merger is concerned, my right hon. Friend the Secretary of State has been in close contact with the chief executives of both organisations. They have confirmed that there are no planned store closures as a result of the merger.
Hugh Gaffney
Asda and Sainsbury’s combined will have a workforce of 330,000 people. Will the Secretary of State provide any assurance to these workers today that the Government will do everything in their power to stop any job losses or any cuts to pay and conditions? Is this a supermarket deal for workers and customers, or is it one for private profiteer shareholders?
Mr Gyimah
The hon. Gentleman will be aware that the merger is a matter for the companies themselves. They have, however, given an assurance that there are no planned closures and confirmed that Asda will continue to be run from Leeds with its own chief executive officer. The Competition and Markets Authority is looking at other aspects of the merger.
Mr Gregory Campbell (East Londonderry) (DUP)
A lot of jobs are sustained by local suppliers to both supermarkets. What opportunities will the Minister take to ensure that that continues, and in fact increases, with the newly formed company?
Mr Gyimah
The potential impact on suppliers and the supply chain is a very valid concern, given the market power that the combined entity will have, which is why my right hon. Friend the Secretary of State wrote to the CMA asking it to look at the impact on the supply chain as part of its ongoing investigation.
Wera Hobhouse (Bath) (LD)
Draft Higher Education (Fee Limits and Fee Limit Condition) (England) Regulations 2018
Sam Gyimah Excerpts(5 years, 9 months ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
I beg to move,
That the Committee has considered the Draft Higher Education (Fee Limits and Fee Limit Condition) (England) Regulations 2018.
It is a pleasure to serve under your chairmanship, Mr Rosindell. On 2 July, I announced that maximum fees for students undertaking undergraduate courses in the 2019-2020 academic year would remain at 2018-2019 levels for the second year running. The Government have listened to the views of young people, parents and Members, and have decided to freeze maximum tuition fees for the 2019-2020 academic year, saving students up to £255.
The freeze in fees builds on other changes we have made to help students with their finances. From the ’18-’19 tax year we increased the threshold above which graduates are required to make repayments on their loans from £21,000 to £25,000, rising by average earnings thereafter. That puts more money in the pockets of graduates, and it is happening in the context of widening access to higher education. A record proportion of 18-year-olds, including those from disadvantaged backgrounds, are going to university to study full time. However, there is still more to do across higher education. That is why the Government are undertaking a major review of post-18 education and funding to ensure that we have a joined-up education system that is accessible to all and encourages the development of the skills we need as a country. The Government expect to conclude the review in early 2019.
These regulations are made under section 10 and schedule 2 of the Higher Education and Research Act 2017. They set the maximum fee limits that providers in England can charge home students in 2019-2020. The existing fee caps, made under section 24 of the Higher Education Act 2004, will be revoked automatically on 1 August 2019 as a result of paragraph 30(2) of schedule 11 to the 2017 Act. It is therefore essential that new regulations are made under HERA to ensure that fee caps continue and that students benefit from the freeze in maximum fees.
Under HERA, providers can choose to register with the new independent regulator, the Office for Students, in one of two categories: the “Approved (fee cap)” category or the “Approved” category. Providers registering in the “Approved (fee cap)” category will, for 2019-2020, be eligible for OfS grant funding and subject to maximum fees set in the regulations—£9,250 for a full-time course offered by a provider with a teaching excellence and student outcomes award. Students attending “Approved (fee cap)” providers will be able to access loans to cover the full costs of their fees. Providers registering in the “Approved” category, however, will not be eligible for OfS grant funding or subject to maximum fees. Students attending those providers will be able to access lower rates of loans towards the costs of their fees. Under HERA, the OfS will be able to limit fees charged by “Approved (fee cap)” providers once the regulations come into force.
Without the regulations, providers will be free legally to charge whatever fees they wish, and we will be unable to implement fully the new regulatory framework under HERA—in particular, the requirement for “Approved (fee cap)” providers to submit access and participation plans to the OfS in order to charge fees above £6,165 for full-time courses. The regulations will ensure that providers have to adhere to the maximum cap, and without them, providers would be free to charge whatever they want. I commend the regulations to the Committee.
Mr Gyimah
I thank hon. Members for a wide-ranging debate and for some very pertinent questions, which I will try to answer.
The first question pertained to the independent reviewer for the teaching excellence and outcomes framework. I want to put it on the record that the process of appointing the reviewer is under way and an announcement will be made in due course, once the appointment has been made.
A number of issues were raised about the current fees system. Interestingly, the Opposition did not mention the effect of raising the threshold, which is an important policy. It cost billions of pounds and will save the average student about £10,000 over the duration of the loan. It is not an insignificant policy in ensuring that we alleviate the burden of debt for students.
Since I was appointed to this job, I have travelled around the country speaking directly to students. I have spoken to about 1,500 students since I was appointed in January. When I say that what we are doing is a response to listening to students, that is meant very seriously. Students have a range of concerns. The issue that is most likely to get them to riot on campus is actually not tuition fees, but the rent going up. That has come up repeatedly.
In that context, maintenance grants were mentioned. It is worth putting it on the record that maintenance grants offered significantly less money than a student can get through a loan. It was actually more difficult for students to pay their way through university, because they received maintenance grants of about £3,000, whereas now they can get a loan, with almost no questions asked, of £10,000. Furthermore, if someone earns less than £25,000 and cannot pay back the loan, they do not have to and after 30 years it is written off. That is helpful for disadvantaged people, because there is no barrier to their accessing higher education. It is therefore unsurprising that the proportion of disadvantaged 18-year-olds applying for full-time undergraduate courses was, in January this year, a record high of 22.6%.
Emma Reynolds
I welcome the threshold that the Minister outlined in his opening speech and has just emphasised, but there is a difference between a grant and a loan. Even if someone will never pay the loan back, they do not know that for sure because they are not entirely sure how much they will earn over their lifetime. Does he not accept that, although maintenance grants were only £3,000, that was money in people’s pockets up front that they never had to pay back? That is different from a loan.
Mr Gyimah
There are two points to make about that. If someone got a £3,000 grant in the previous system and then had to go to a bank to borrow, that would cost them a lot more than it does to borrow under the current loans system. The truth about the current system, which is obviously under review, is that it is a hybrid between a loans system and a contribution system. Opposition Members do students a disservice by pretending that it is similar to a loan from Lloyds bank. It does not go on their credit score if a student is not able to pay the money back, they will not have a bailiff knocking on their door, and there is the issue of their having a job in which they earn more than £25,000. That is very different from a commercial loan, and we do students a disservice by not explaining the system to them and pretending that it is something it is not.
Gordon Marsden
I am sorry to have to intervene on the Minister on that point. He accused the Opposition of not talking about the raising of the threshold. Let me put it on the record to satisfy him, for what it is worth, that we welcome the raising of the threshold. We have persistently and continually argued for the need to raise it, not least because of its implications for students in certain parts of the country who leave university and do not get a decent graduate premium immediately. They are in a very different situation.
However, I really must take issue with the Minister saying, “Oh well, they don’t have to pay it back.” I thought that this was supposed to be a fiscally prudent Government who wanted to look to the future, but the Minister is throwing around public loans like a man with no arms. We all know—surely the Minister has seen this too—that the resource accounting and budgeting figure for the debt that will be lain on future generations is going up and up. We cannot simply work on that basis.
The other point I will mention briefly is that the Minister says that it is much better to take up a loan, based entirely on the assumption that the cohort is made up of 18 to 22-year-olds. I am not sure that is even correct for them, but it is very different for older people—mature students in their 30s and 40s and those doing part-time courses—to take on a debt of the sort of amount we are talking about. The statistics are clear that there has been a catastrophic drop in the number of mature students and part-timers. Although we cannot say absolutely that the tripling of the fees is 100% responsible, it certainly bears a great part of the responsibility.
Mr Gyimah
I thought that was meant to be an intervention but it was a mini-speech. At the risk of drifting into a Second Reading debate on the student finance system, there is one clear difference between Government Members and Opposition Members: if university education was made free, which the Opposition argue for, the numbers would have to be capped. If it is free, it is capped; and if it is capped, it is the well-off who will benefit the most. The system we have introduced means that more disadvantaged students are going to university than ever before. We do not say that the system is perfect, and that is why there is a post-18 review with a wide-ranging remit looking at the issues, including the interest rate, which was raised by the Opposition. If the Opposition would make it free, they have to tell us whose child will not go to university under their scheme when they cut the numbers.
A number of other questions were raised. On the OfS and its capacity to register, it does have that capacity. A lot is going on, and it is on track to deliver in the timeframe that has been set. On new providers, the OfS is dealing with a number of inquiries from them. On EU students and whether the clarification regarding university students applies to FE students, I would like to put it on the record that it does.
The issue of part-time students is of serious concern. We have adopted a number of measures to support part-time and mature students. For example, in the next academic year, part-time students will for the first time be able to access full-time maintenance loans, and we are looking at a lot more support for such students as part of the Augar review.
The regulations must be introduced now because universities have to market their courses for the next academic year, but this is by no means the end of the matter as far as student finance is concerned. I thank Members for their contributions and I welcome the points raised by the Opposition. We must ensure that access to our elite universities is as open as possible, without resorting to any kind of social engineering, so that wherever in our system someone is educated, they are competitive and can apply and get into the top universities if they have the grades. That is a real focus and passion of mine, and I will say lots more about it in due course. I therefore commend the regulations to the Committee.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Higher Education (Fee Limits and Fee Limit Condition) (England) Regulations 2018.